Fastighetsbolaget Emilshus Insiders Lose Out As Stock Sinks To kr23.80

The recent 10% drop in Fastighetsbolaget Emilshus AB (publ)'s (STO:EMIL B) stock could come as a blow to insiders who purchased kr2.6m worth of stock at an average buy price of kr29.32 over the past 12 months. Insiders buy with the expectation to see their investments rise in value over a period of time. However, recent losses have rendered their above investment worth kr2.1m which is not ideal.

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.

Check out our latest analysis for Fastighetsbolaget Emilshus

Fastighetsbolaget Emilshus Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Independent Director Lars Backvall bought kr1.3m worth of shares at a price of kr30.00 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being kr23.80). 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. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

Happily, we note that in the last year insiders paid kr2.6m for 89.25k shares. But insiders sold 23.00k shares worth kr630k. Overall, Fastighetsbolaget Emilshus insiders were net buyers during the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Fastighetsbolaget Emilshus is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Does Fastighetsbolaget Emilshus Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Based on our data, Fastighetsbolaget Emilshus insiders have about 1.0% of the stock, worth approximately kr28m. However, it's possible that insiders might have an indirect interest through a more complex structure. I generally like to see higher levels of ownership.

So What Do The Fastighetsbolaget Emilshus Insider Transactions Indicate?

The fact that there have been no Fastighetsbolaget Emilshus insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. Insiders do have a stake in Fastighetsbolaget Emilshus and their transactions don't cause us concern. 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. Be aware that Fastighetsbolaget Emilshus is showing 4 warning signs in our investment analysis, and 1 of those can't be ignored...

But note: Fastighetsbolaget Emilshus 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, 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.