Trade Alert: The President of Europe Division Of Swedish Match AB (publ) (STO:SWMA), Joakim Tilly, Has Just Spent kr515k Buying 9.2% More Shares

Even if it's not a huge purchase, we think it was good to see that Joakim Tilly, the President of Europe Division of Swedish Match AB (publ) (STO:SWMA) recently shelled out kr515k to buy stock, at kr678 per share. Although the purchase is not a big one, increasing their shareholding by only 9.2%, it can be interpreted as a good sign.

View our latest analysis for Swedish Match

The Last 12 Months Of Insider Transactions At Swedish Match

The President & CEO Lars Dahlgren made the biggest insider purchase in the last 12 months. That single transaction was for kr659k worth of shares at a price of kr659 each. That implies that an insider found the current price of kr714 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. In this case we're pleased to report that the insider purchases were made at close to current prices.

Over the last year, we can see that insiders have bought 4.50k shares worth kr2.9m. But they sold 998.00 shares for kr670k. In total, Swedish Match insiders bought more than they sold over the last year. 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!

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

Insider Ownership of Swedish Match

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 0.09% of Swedish Match shares, worth about kr101m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Swedish Match Tell Us?

The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Swedish Match. That's what I like to see! 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. When we did our research, we found 2 warning signs for Swedish Match (1 is a bit concerning!) that we believe deserve your full attention.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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, but not derivative transactions.

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This article by Simply Wall St is general in nature. 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.
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