Guideline Geo Insiders Added kr5.97m Of Stock To Their Holdings

Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of Guideline Geo AB (publ) (STO:GGEO), it sends a favourable message to the company's shareholders.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

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The Last 12 Months Of Insider Transactions At Guideline Geo

In the last twelve months, the biggest single purchase by an insider was when Independent Director Anders Gemfors bought kr2.4m worth of shares at a price of kr9.92 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being kr9.68). Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. We note that Anders Gemfors was both the biggest buyer and the biggest seller.

Over the last year, we can see that insiders have bought 629.56k shares worth kr6.0m. But they sold 145.00k shares for kr1.4m. In the last twelve months there was more buying than selling by Guideline Geo insiders. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

See our latest analysis for Guideline Geo

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Insider Ownership Of Guideline Geo

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Guideline Geo insiders own 34% of the company, worth about kr36m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The Guideline Geo Insider Transactions Indicate?

Insider buying and selling have balanced each other out in the last three months, so we can't deduct anything useful from these recent trades. But insiders have shown more of an appetite for the stock, over the last year. Insiders own shares in Guideline Geo and we see no evidence to suggest they are worried about the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Guideline Geo. Case in point: We've spotted 3 warning signs for Guideline Geo you should be aware of, and 1 of them is a bit concerning.

But note: Guideline Geo 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.