Insider Buying: The Hemcheck Sweden AB (publ) (STO:HEMC) Director Just Bought 36% More Shares

Even if it's not a huge purchase, we think it was good to see that Hjalmar Didrikson, the Director of Hemcheck Sweden AB (publ) (STO:HEMC) recently shelled out kr500k to buy stock, at kr4.48 per share. While we're hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 36%.

Check out our latest analysis for Hemcheck Sweden

Hemcheck Sweden Insider Transactions Over The Last Year

Notably, that recent purchase by Hjalmar Didrikson is the biggest insider purchase of Hemcheck Sweden shares that we've seen in the last year. That implies that an insider found the current price of kr4.71 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. The good news for Hemcheck Sweden share holders is that an insider was buying at near the current price. The only individual insider to buy over the last year was Hjalmar Didrikson.

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 always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership of Hemcheck Sweden

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. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 8.5% of Hemcheck Sweden shares, worth about kr6.3m, according to our data. However, it's possible that insiders might have an indirect interest through a more complex structure. We do generally prefer see higher levels of insider ownership.

What Might The Insider Transactions At Hemcheck Sweden Tell Us?

It is good to see the recent insider purchase. 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. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Hemcheck Sweden insiders are reasonably well aligned, and optimistic for the future. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. To help with this, we've discovered 5 warning signs (4 are potentially serious!) that you ought to be aware of before buying any shares in Hemcheck Sweden.

Of course Hemcheck Sweden may not be the best stock to buy. So you may wish to see this free collection of high quality 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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