VNV Global Insiders Lose Out As Stock Sinks To kr14.65

Insiders who bought US$1.25m worth of VNV Global AB (publ)'s (STO:VNV) stock at an average buy price of US$18.28 over the last year may be disappointed by the recent 15% decrease in the stock. Insiders invest with the hopes of seeing their money grow in value over time. However, as a result of recent losses, their initial investment is now only worth US$998.5k, which is not what they expected.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for VNV Global

The Last 12 Months Of Insider Transactions At VNV Global

Over the last year, we can see that the biggest insider purchase was by CEO, MD & Board Member Per Brilioth for kr863k worth of shares, at about kr17.39 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being kr14.65). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

While VNV Global insiders bought shares during the last year, they didn't sell. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

VNV Global is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

VNV Global Insiders Bought Stock Recently

Over the last three months, we've seen significant insider buying at VNV Global. Not only was there no selling that we can see, but they collectively bought kr1.1m worth of shares. This makes one think the business has some good points.

Insider Ownership

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Based on our data, VNV Global insiders have about 1.4% of the stock, worth approximately kr27m. But they may have an indirect interest through a corporate structure that we haven't picked up on. We prefer to see high levels of insider ownership.

What Might The Insider Transactions At VNV Global Tell Us?

The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest VNV Global insiders are well aligned, and that they may think the share price is too low. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. For example, VNV Global has 3 warning signs (and 2 which make us uncomfortable) we think you should know about.

But note: VNV Global may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.