Trade Alert: The Chairman of the Board Of Atrium Ljungberg AB (publ) (STO:ATRLJ B), Johan Ljungberg, Has Just Spent kr16m Buying A Few More Shares

Atrium Ljungberg AB (publ) (STO:ATRLJ B) shareholders (or potential shareholders) will be happy to see that the Chairman of the Board, Johan Ljungberg, recently bought a whopping kr16m worth of stock, at a price of kr158. There's no denying a buy of that magnitude suggests conviction in a brighter future, although we do note that proportionally it only increased their holding by 0.5%.

See our latest analysis for Atrium Ljungberg

Atrium Ljungberg Insider Transactions Over The Last Year

In fact, the recent purchase by Johan Ljungberg was the biggest purchase of Atrium Ljungberg shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was higher than kr156 (the recent price), an insider wanted to purchase shares. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. 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 Atrium Ljungberg insiders bought shares during the last year, they didn't sell. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

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).

Does Atrium Ljungberg Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. 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's great to see that Atrium Ljungberg insiders own 19% of the company, worth about kr3.7b. 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 Do The Atrium Ljungberg Insider Transactions Indicate?

The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Atrium Ljungberg. That's what I like to see! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Atrium Ljungberg. When we did our research, we found 3 warning signs for Atrium Ljungberg (1 is concerning!) that we believe deserve your full attention.

Of course Atrium Ljungberg 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, but not derivative transactions.

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This article by Simply Wall St is general in nature. 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.
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