AddLife Insiders Added kr35.2m Of Stock To Their Holdings

Over the last year, a good number of insiders have significantly increased their holdings in AddLife AB (publ) (STO:ALIF B). This is encouraging because it indicates that insiders are more optimistic about the company's prospects.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for AddLife

AddLife Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Independent Director Håkan Roos for kr32m worth of shares, at about kr101 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of kr163. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

In the last twelve months AddLife insiders were buying shares, but not selling. 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!

AddLife is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Does AddLife Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that AddLife insiders own 9.2% of the company, worth about kr1.8b. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At AddLife Tell Us?

It doesn't really mean much that no insider has traded AddLife shares in the last quarter. However, our analysis of transactions over the last year is heartening. With high insider ownership and encouraging transactions, it seems like AddLife insiders think the business has merit. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Case in point: We've spotted 3 warning signs for AddLife you should be aware of, and 1 of them is significant.

Of course AddLife 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.