Bullish Fabege Insiders Rewarded As Their Investment Rises To kr77.0m

Fabege AB (publ) (STO:FABG) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 11%, resulting in a kr3.4b rise in the company's market capitalisation, translating to a gain of 13% on their initial investment. Put another way, the original kr68.3m acquisition is now worth kr77.0m.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for Fabege

Fabege Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when President & CEO Stefan Dahlbo bought kr11m worth of shares at a price of kr99.68 per share. We do like to see buying, but this purchase was made at well below the current price of kr112. 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.

In the last twelve months insiders purchased 687.40k shares for kr68m. But insiders sold 25.00k shares worth kr2.4m. In total, Fabege insiders bought more than they sold over the last year. 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!

Fabege is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Fabege Insiders Are Selling The Stock

Over the last three months, we've seen notably more insider selling, than insider buying, at Fabege. In total, President & CEO Stefan Dahlbo sold kr2.4m worth of shares in that time. Meanwhile insiders bought kr627k worth. Because the selling vastly outweighs the buying, we'd say this is a somewhat bearish sign.

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Fabege insiders own 11% of the company, currently worth about kr3.8b based on the recent share price. 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 Does This Data Suggest About Fabege Insiders?

The insider sales have outweighed the insider buying, at Fabege, in the last three months. In contrast, they appear keener if you look at the last twelve months. We are also comforted by the high levels of insider ownership. So we're not too bothered by recent selling. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Fabege. When we did our research, we found 2 warning signs for Fabege (1 is potentially serious!) that we believe deserve your full attention.

Of course Fabege 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.