Billerud Independent Director Acquires 1,083% More Stock

Those following along with Billerud AB (publ) (STO:BILL) will no doubt be intrigued by the recent purchase of shares by Magnus Nicolin, Independent Director of the company, who spent a stonking kr16m on stock at an average price of kr120. That increased their holding by a full 1,083%, which arguably implies the sort of confidence required for a shy sweet-natured nerd to ask the most popular kid in the school to go out on a date.

See our latest analysis for Billerud

Billerud Insider Transactions Over The Last Year

Notably, that recent purchase by Magnus Nicolin is the biggest insider purchase of Billerud shares that we've seen in the last year. So it's clear an insider wanted to buy, at around the current price, which is kr121. 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. Happily, the Billerud insiders decided to buy shares at close to current prices.

Happily, we note that in the last year insiders paid kr16m for 131.76k shares. But they sold 3.10k shares for kr333k. Overall, Billerud insiders were net buyers during 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!

Billerud 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

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Based on our data, Billerud insiders have about 0.1% of the stock, worth approximately kr29m. But they may have an indirect interest through a corporate structure that we haven't picked up on. We prefer to see high levels of insider ownership.

So What Do The Billerud Insider Transactions Indicate?

It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. Insiders likely see value in Billerud 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 Billerud. While conducting our analysis, we found that Billerud has 1 warning sign and it would be unwise to ignore it.

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 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.