Insider Spends kr569k Buying More Shares In Enad Global 7

Even if it's not a huge purchase, we think it was good to see that Fredrik Ruden, the Group Deputy CEO & CFO of Enad Global 7 AB (publ) (STO:EG7) recently shelled out kr569k to buy stock, at kr11.37 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 22%.

Our free stock report includes 1 warning sign investors should be aware of before investing in Enad Global 7. Read for free now.

Enad Global 7 Insider Transactions Over The Last Year

In fact, the recent purchase by Fredrik Ruden was the biggest purchase of Enad Global 7 shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at above the current price of kr10.58. 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. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Fredrik Ruden was the only individual insider to buy during the last year.

The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Check out our latest analysis for Enad Global 7

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership Of Enad Global 7

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Enad Global 7 insiders own 30% of the company, worth about kr281m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The Enad Global 7 Insider Transactions Indicate?

The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest Enad Global 7 insiders are well aligned, and quite possibly think the share price is too low. Nice! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 1 warning sign for Enad Global 7 you should be aware of.

But note: Enad Global 7 may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.