Arla Plast Independent Director Acquires 31% More Stock

Even if it's not a huge purchase, we think it was good to see that Ulf Hedlundh, the Independent Director of Arla Plast AB (STO:ARPL) recently shelled out kr483k to buy stock, at kr48.33 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 31%.

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The Last 12 Months Of Insider Transactions At Arla Plast

In fact, the recent purchase by Ulf Hedlundh was the biggest purchase of Arla Plast shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, at around the current price, which is kr50.20. 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 Arla Plast share holders is that insiders were buying at near the current price.

Happily, we note that in the last year insiders paid kr716k for 14.80k shares. On the other hand they divested 10.00k shares, for kr491k. Overall, Arla Plast insiders were net buyers during the last year. 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!

View our latest analysis for Arla Plast

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Insider Ownership Of Arla Plast

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. It appears that Arla Plast insiders own 40% of the company, worth about kr418m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The Arla Plast Insider Transactions Indicate?

The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest Arla Plast insiders are well aligned, and quite possibly think the share price is too low. That's what I like to see! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. You'd be interested to know, that we found 1 warning sign for Arla Plast and we suggest you have a look.

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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.