As Bokusgruppen AB (publ) (STO:BOKUS) hits kr711m market cap, insiders may be dismayed about not purchasing higher quantities

By
Simply Wall St
Published
February 22, 2022
OM:BOKUS
Source: Shutterstock

Bokusgruppen AB (publ) (STO:BOKUS) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 18% resulting in a kr107m addition to the company’s market value. As a result, the stock they originally bought for kr507k is now worth kr572k.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for Bokusgruppen

Bokusgruppen Insider Transactions Over The Last Year

The Director Mattias Björk made the biggest insider purchase in the last 12 months. That single transaction was for kr507k worth of shares at a price of kr39.00 each. Even though the purchase was made at a significantly lower price than the recent price (kr44.00), we still think insider buying is a positive. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume
OM:BOKUS Insider Trading Volume February 22nd 2022

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 Bokusgruppen Boast High Insider Ownership?

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. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Bokusgruppen insiders own 76% of the company, worth about kr537m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Bokusgruppen Tell Us?

The fact that there have been no Bokusgruppen insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. It would be great to see more insider buying, but overall it seems like Bokusgruppen insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. 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. To assist with this, we've discovered 3 warning signs that you should run your eye over to get a better picture of Bokusgruppen.

But note: Bokusgruppen 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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