Independent Director Fredrik Persson Just Bought 100% More Shares In Hufvudstaden AB (publ) (STO:HUFV A)

Even if it's not a huge purchase, we think it was good to see that Fredrik Persson, the Independent Director of Hufvudstaden AB (publ) (STO:HUFV A) recently shelled out kr340k to buy stock, at kr136 per share. While that isn't the hugest buy, it actually boosted their shareholding by 100%, which is good to see.

See our latest analysis for Hufvudstaden

Hufvudstaden Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Independent Director Anna-Greta Sjoberg for kr475k worth of shares, at about kr190 per share. That means that an insider was happy to buy shares at above the current price of kr137. It's very possible they regret the purchase, but it's more likely they are bullish about the company. 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.

Hufvudstaden insiders may have bought shares in the last year, but they didn't sell any. Their average price was about kr127. These transactions show that insiders have confidence to invest their own money in the stock, albeit at slightly below the recent price. 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!

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

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Hufvudstaden insiders own 1.0% of the company, worth about kr274m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The Hufvudstaden Insider Transactions Indicate?

The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest Hufvudstaden insiders are well aligned, and quite possibly think the share price is too low. One for the watchlist, at least! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Hufvudstaden. To assist with this, we've discovered 3 warning signs that you should run your eye over to get a better picture of Hufvudstaden.

But note: Hufvudstaden 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, 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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