Potential Essity AB (publ) (STO:ESSITY B) shareholders may wish to note that the President, Magnus Groth, recently bought kr1.0m worth of stock, paying kr276 for each share. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 6.9%.
Essity Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Independent Director Louise Svanberg bought kr2.0m worth of shares at a price of kr305 per share. That means that even when the share price was higher than kr271 (the recent price), an insider wanted to purchase shares. 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. To us, it's very important to consider the price insiders pay for shares. 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.
In the last twelve months insiders purchased 48.92k shares for kr15m. But insiders sold 2.50k shares worth kr738k. In the last twelve months there was more buying than selling by Essity insiders. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Essity is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership of Essity
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 0.04% of Essity shares, worth about kr69m, according to our data. We do generally prefer see higher levels of insider ownership.
So What Do The Essity Insider Transactions Indicate?
It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. Insiders likely see value in Essity shares, given these transactions (along with notable insider ownership of the company). In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Essity. Every company has risks, and we've spotted 1 warning sign for Essity you should know about.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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, 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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