Stock Analysis

Arlandastad Group Insiders Still kr306k Away From Original Investment Value

Published
OM:AGROUP

Insiders who purchased kr2.86m worth of Arlandastad Group AB (publ) (STO:AGROUP) shares over the past year recouped some of their losses after price gained 13% last week. However, the purchase is proving to be an expensive wager as insiders are yet to get ahead of their losses which currently stand at kr306k since the time of purchase.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for Arlandastad Group

Arlandastad Group Insider Transactions Over The Last Year

The Director Per Taube made the biggest insider purchase in the last 12 months. That single transaction was for kr1.8m worth of shares at a price of kr35.80 each. That means that even when the share price was higher than kr33.80 (the recent price), an insider wanted to purchase shares. 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. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

While Arlandastad Group insiders bought shares during the last year, they didn't sell. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

OM:AGROUP Insider Trading Volume November 16th 2023

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

Does Arlandastad Group Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Arlandastad Group insiders own about kr1.0b worth of shares (which is 47% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The Arlandastad Group Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Arlandastad Group shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Judging from their transactions, and high insider ownership, Arlandastad Group insiders feel good about the company's future. Of course, the future is what matters most. So if you are interested in Arlandastad Group, you should check out this free report on analyst forecasts for the company.

But note: Arlandastad Group 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.