K-Fast Holding Insiders Placed Bullish Bets Worth kr5.92m

It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in K-Fast Holding AB (publ)'s (STO:KFAST B) case, it's fantastic news for shareholders.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit.

K-Fast Holding Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Founder Jacob Karlsson bought kr2.8m worth of shares at a price of kr13.86 per share. That means that an insider was happy to buy shares at around the current price of kr14.00. Of course they may have changed their mind. But this suggests they are optimistic. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. The good news for K-Fast Holding share holders is that insiders were buying at near the current price.

In the last twelve months insiders purchased 381.74k shares for kr5.9m. On the other hand they divested 30.00k shares, for kr491k. In the last twelve months there was more buying than selling by K-Fast Holding insiders. The average buy price was around kr15.51. This is nice to see since it implies that insiders might see value around current prices. 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!

Check out our latest analysis for K-Fast Holding

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.

Insiders At K-Fast Holding Have Bought Stock Recently

There has been significantly more insider buying, than selling, at K-Fast Holding, over the last three months. In fact, nine insiders bought kr1.2m worth of shares. But insiders only sold shares worth kr491k. Insiders have spent more buying shares than they have selling, so on balance we think they are are probably optimistic.

Insider Ownership Of K-Fast Holding

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. K-Fast Holding insiders own about kr1.1b worth of shares (which is 33% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The K-Fast Holding Insider Transactions Indicate?

It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. 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 K-Fast Holding insiders are well aligned, and quite possibly think the share price is too low. Nice! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing K-Fast Holding. In terms of investment risks, we've identified 1 warning sign with K-Fast Holding and understanding this should be part of your investment process.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.