Insider Spends kr10m Buying More Shares In Scandi Standard

Those following along with Scandi Standard AB (publ) (STO:SCST) will no doubt be intrigued by the recent purchase of shares by Cecilia Lannebo, Independent Director of the company, who spent a stonking kr10m on stock at an average price of kr78.89. That purchase boosted their holding by 193%, which makes us wonder if the move was inspired by quietly confident deeply-felt optimism.

Check out our latest analysis for Scandi Standard

The Last 12 Months Of Insider Transactions At Scandi Standard

The Director Oystein Engebretsen made the biggest insider purchase in the last 12 months. That single transaction was for kr10m worth of shares at a price of kr50.64 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of kr80.80. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

In the last twelve months insiders purchased 855.25k shares for kr55m. But they sold 6.00k shares for kr350k. Overall, Scandi Standard insiders were net buyers during the last year. The average buy price was around kr63.81. We don't deny that it is nice to see insiders buying stock in the company. However, we do note that they were buying at significantly lower prices than today's share price. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Scandi Standard is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 15% of Scandi Standard shares, worth about kr768m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About Scandi Standard Insiders?

It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Scandi Standard. That's what I like to see! While it's good to be aware of 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 - Scandi Standard has 2 warning signs we think you should be aware of.

But note: Scandi Standard 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com