Insider Spends €4.0m Buying More Shares In Latvian Forest Company

Potential Latvian Forest Company AB (publ) (NGM:LATF B) shareholders may wish to note that the Director, Anders Nilsson, recently bought kr4.0m worth of stock, paying kr8.00 for each share. That's a very decent purchase to our minds and it grew their holding by a solid 16%.

See our latest analysis for Latvian Forest Company

Latvian Forest Company Insider Transactions Over The Last Year

Notably, that recent purchase by Anders Nilsson is the biggest insider purchase of Latvian Forest Company shares that we've seen in the last year. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of kr9.20. 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.

Anders Nilsson purchased 540.15k shares over the year. The average price per share was kr8.05. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 18% of Latvian Forest Company shares, worth about kr65m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Latvian Forest Company Tell Us?

It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest Latvian Forest Company insiders are well aligned, and that they may think the share price is too low. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For instance, we've identified 4 warning signs for Latvian Forest Company (1 makes us a bit uncomfortable) you should be aware of.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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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