Stock Analysis

Despite recent gains, Fastighetsbolaget Emilshus AB (publ) (STO:EMIL B) insiders are still down kr297k after purchasing last year

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OM:EMIL B
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Some of the losses seen by insiders who purchased kr2.6m worth of Fastighetsbolaget Emilshus AB (publ) (STO:EMIL B) shares over the past year were recovered after the stock increased by 11% over the past week. The purchase, however, has proven to be a pricey bet, with losses currently totalling kr297k.

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.

View our latest analysis for Fastighetsbolaget Emilshus

Fastighetsbolaget Emilshus Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Board Member Lars Backvall bought kr1.3m worth of shares at a price of kr30.00 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being kr26.00). 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. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

Happily, we note that in the last year insiders paid kr2.6m for 89.25k shares. On the other hand they divested 23.00k shares, for kr630k. Overall, Fastighetsbolaget Emilshus insiders were net buyers during the last year. 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!

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OM:EMIL B Insider Trading Volume March 18th 2023

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Insider Ownership Of Fastighetsbolaget Emilshus

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. From our data, it seems that Fastighetsbolaget Emilshus insiders own 2.9% of the company, worth about kr86m. However, it's possible that insiders might have an indirect interest through a more complex structure. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

What Might The Insider Transactions At Fastighetsbolaget Emilshus Tell Us?

It doesn't really mean much that no insider has traded Fastighetsbolaget Emilshus shares in the last quarter. However, our analysis of transactions over the last year is heartening. Insiders do have a stake in Fastighetsbolaget Emilshus and their transactions don't cause us concern. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Fastighetsbolaget Emilshus. For example, Fastighetsbolaget Emilshus has 4 warning signs (and 2 which shouldn't be ignored) we think you should know about.

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, but not derivative transactions.

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