Insiders Give Up kr3.0m As Aktiebolaget Fastator Stock Drops To kr2.41

The recent 10% drop in Aktiebolaget Fastator (publ)'s (STO:FASTAT) stock could come as a blow to insiders who purchased kr4.07m worth of stock at an average buy price of kr8.73 over the past 12 months. Insiders invest with the hopes of seeing their money grow in value over time. However, as a result of recent losses, their initial investment is now only worth kr1.12m, which is not what they expected.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for Aktiebolaget Fastator

Aktiebolaget Fastator Insider Transactions Over The Last Year

The Chief Financial Officer Christopher Stromback made the biggest insider purchase in the last 12 months. That single transaction was for kr988k worth of shares at a price of kr10.40 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being kr2.41). Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

Over the last year, we can see that insiders have bought 466.68k shares worth kr4.1m. But insiders sold 100.00k shares worth kr271k. Overall, Aktiebolaget Fastator insiders were net buyers during the last year. They paid about kr8.73 on average. I'd consider this a positive as it suggests insiders see value at around the current price. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. 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).

Have Aktiebolaget Fastator Insiders Traded Recently?

We saw some Aktiebolaget Fastator insider buying shares in the last three months. In that period insiders spent kr371k on shares. But insider Svante Bengtsson sold kr271k worth. It is good to see that insiders have been buying, but they did not buy very many shares, in the scheme of things.

Does Aktiebolaget Fastator 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. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Aktiebolaget Fastator insiders own 64% of the company, worth about kr120m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Aktiebolaget Fastator Tell Us?

It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest Aktiebolaget Fastator insiders are well aligned, and quite possibly think the share price is too low. One for the watchlist, at least! 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. Every company has risks, and we've spotted 4 warning signs for Aktiebolaget Fastator (of which 3 are a bit concerning!) you should know about.

But note: Aktiebolaget Fastator 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.