Insiders Buying Enad Global 7 Might Wish They Invested More, Stock Gains 17%

Enad Global 7 AB (publ) (STO:EG7) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 17%, resulting in a kr179m rise in the company's market capitalisation, translating to a gain of 21% on their initial investment. In other words, the original kr568.6k purchase is now worth kr688.0k.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

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The Last 12 Months Of Insider Transactions At Enad Global 7

The Group Deputy CEO & CFO Fredrik Ruden made the biggest insider purchase in the last 12 months. That single transaction was for kr569k worth of shares at a price of kr11.37 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of kr13.76. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

View our latest analysis for Enad Global 7

Enad Global 7 is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

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. We usually like to see fairly high levels of insider ownership. Enad Global 7 insiders own about kr395m worth of shares. That equates to 32% of the company. 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 fact that there have been no Enad Global 7 insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. Judging from their transactions, and high insider ownership, Enad Global 7 insiders feel good about the company's future. Of course, the future is what matters most. So if you are interested in Enad Global 7, you should check out this free report on analyst forecasts for the company.

Of course Enad Global 7 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.