Chair of the Board of Svenska Cellulosa Aktiebolaget Picks Up 75% More Stock

Svenska Cellulosa Aktiebolaget SCA (publ) (STO:SCA B) shareholders (or potential shareholders) will be happy to see that the Chair of the Board, Helena Stjernholm, recently bought a whopping kr190m worth of stock, at a price of kr127. That purchase boosted their holding by 75%, which makes us wonder if the move was inspired by quietly confident deeply-felt optimism.

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The Last 12 Months Of Insider Transactions At Svenska Cellulosa Aktiebolaget

In fact, the recent purchase by Chair of the Board Helena Stjernholm was not their only acquisition of Svenska Cellulosa Aktiebolaget shares this year. They previously made an even bigger purchase of kr260m worth of shares at a price of kr133 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being kr127). It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

Over the last year, we can see that insiders have bought 3.53m shares worth kr455m. But they sold 2.00k shares for kr304k. In the last twelve months there was more buying than selling by Svenska Cellulosa Aktiebolaget insiders. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Check out our latest analysis for Svenska Cellulosa Aktiebolaget

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Insider Ownership

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. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Svenska Cellulosa Aktiebolaget insiders own 0.6% of the company, worth about kr493m. 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 Does This Data Suggest About Svenska Cellulosa Aktiebolaget Insiders?

It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Svenska Cellulosa Aktiebolaget. Looks promising! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 2 warning signs with Svenska Cellulosa Aktiebolaget and understanding these should be part of your investment process.

Of course Svenska Cellulosa Aktiebolaget 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 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.