Neobo Fastigheter Slides As Insider Purchases Lose Another kr303k

Insiders who acquired kr1.95m worth of Neobo Fastigheter AB (publ)'s (STO:NEOBO) stock at an average price of kr19.53 in the past 12 months may be dismayed by the recent 10% price decline. This is not good as insiders invest based on expectations that their money will appreciate over time. However, as a result of recent losses, their original investment is now worth only kr1.65m.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for Neobo Fastigheter

The Last 12 Months Of Insider Transactions At Neobo Fastigheter

The Chairman of the Board Jan-Erik Hojvall made the biggest insider purchase in the last 12 months. That single transaction was for kr543k worth of shares at a price of kr23.04 each. That means that an insider was happy to buy shares at above the current price of kr16.49. 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.

While Neobo Fastigheter insiders bought shares during the last year, they didn't sell. They paid about kr19.53 on average. These transactions suggest that insiders have considered the current price attractive. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

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.

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Insiders own 15% of Neobo Fastigheter shares, worth about kr361m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About Neobo Fastigheter Insiders?

There haven't been any insider transactions in the last three months -- that doesn't mean much. On a brighter note, the transactions over the last year are encouraging. Judging from their transactions, and high insider ownership, Neobo Fastigheter insiders feel good about the company's future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Neobo Fastigheter. In terms of investment risks, we've identified 2 warning signs with Neobo Fastigheter and understanding them should be part of your investment process.

But note: Neobo Fastigheter 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.