Chief Executive Officer Einar Ponten Just Bought 12% More Shares In Lipum AB (publ) (STO:LIPUM)

Even if it's not a huge purchase, we think it was good to see that Einar Ponten, the Chief Executive Officer of Lipum AB (publ) (STO:LIPUM) recently shelled out kr161k to buy stock, at kr11.50 per share. That purchase might not be huge but it did increase their holding by 12%.

Check out our latest analysis for Lipum

Lipum Insider Transactions Over The Last Year

In fact, the recent purchase by Chief Executive Officer Einar Ponten was not their only acquisition of Lipum shares this year. They previously made an even bigger purchase of kr195k worth of shares at a price of kr15.00 per share. That means that an insider was happy to buy shares at above the current price of kr11.95. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Einar Ponten was the only individual insider to buy shares in the last twelve months. Notably Einar Ponten was also the biggest seller.

Einar Ponten bought a total of 43.00k shares over the year at an average price of kr13.65. 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!

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Does Lipum Boast High 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. We usually like to see fairly high levels of insider ownership. Insiders own 20% of Lipum shares, worth about kr19m. 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 Does This Data Suggest About Lipum Insiders?

It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Given that insiders also own a fair bit of Lipum we think they are probably pretty confident of a bright future. While we like knowing 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 7 warning signs for Lipum you should be aware of, and 5 of these don't sit too well with us.

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, but not derivative transactions.

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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.