Insider Spends kr1.0m Buying More Shares In Stenhus Fastigheter i Norden

Whilst it may not be a huge deal, we thought it was good to see that the Stenhus Fastigheter i Norden AB (publ) (STO:SFAST) CEO & Board Member, Elias Georgiadis, recently bought kr1.0m worth of stock, for kr10.56 per share. While we're hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 12%.

Check out our latest analysis for Stenhus Fastigheter i Norden

The Last 12 Months Of Insider Transactions At Stenhus Fastigheter i Norden

In fact, the recent purchase by CEO & Board Member Elias Georgiadis was not their only acquisition of Stenhus Fastigheter i Norden shares this year. They previously made an even bigger purchase of kr1.0m worth of shares at a price of kr7.64 per share. Even though the purchase was made at a significantly lower price than the recent price (kr11.28), we still think insider buying is a positive. 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.

While Stenhus Fastigheter i Norden insiders bought shares during the last year, they didn't sell. The average buy price was around kr8.59. We don't deny that it is nice to see insiders buying stock in the company. However, we do note that they were buying at significantly lower prices than today's share price. 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!

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).

Insider Ownership Of Stenhus Fastigheter i Norden

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Stenhus Fastigheter i Norden insiders own 6.0% of the company, worth about kr251m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Stenhus Fastigheter i Norden Tell Us?

The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. 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 Stenhus Fastigheter i Norden insiders are well aligned, and quite possibly think the share price is too low. Looks promising! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. You'd be interested to know, that we found 1 warning sign for Stenhus Fastigheter i Norden and we suggest you have a look.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.