The Chairman of the Board of DevPort AB (publ) (STO:DEVP B), Per Rodert, Just Bought 1.7% More Shares

Even if it's not a huge purchase, we think it was good to see that Per Rodert, the Chairman of the Board of DevPort AB (publ) (STO:DEVP B) recently shelled out kr317k to buy stock, at kr15.02 per share. Although the purchase is not a big one, increasing their shareholding by only 1.7%, it can be interpreted as a good sign.

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DevPort Insider Transactions Over The Last Year

In fact, the recent purchase by Chairman of the Board Per Rodert was not their only acquisition of DevPort shares this year. Earlier in the year, they paid kr25.10 per share in a kr5.5m purchase. That means that an insider was happy to buy shares at above the current price of kr15.90. It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares is very important. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Per Rodert was the only individual insider to buy during the last year.

Per Rodert bought 545.49k shares over the last 12 months at an average price of kr19.73. 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

Many investors like to check how much of a company is owned by 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. Insiders own 36% of DevPort shares, worth about kr57m. 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 DevPort Insider Transactions Indicate?

The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. Insiders likely see value in DevPort shares, given these transactions (along with notable insider ownership of the company). While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. While conducting our analysis, we found that DevPort has 5 warning signs and it would be unwise to ignore them.

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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