Cecilia Wachtmeister Bought 111% More Shares In IAR Systems Group

Whilst it may not be a huge deal, we thought it was good to see that the IAR Systems Group AB (publ) (STO:IAR B) Chief Executive Officer, Cecilia Wachtmeister, recently bought kr613k worth of stock, for kr123 per share. While that isn't the hugest buy, it actually boosted their shareholding by 111%, which is good to see.

See our latest analysis for IAR Systems Group

The Last 12 Months Of Insider Transactions At IAR Systems Group

Notably, that recent purchase by Cecilia Wachtmeister is the biggest insider purchase of IAR Systems Group shares that we've seen in the last year. So it's clear an insider wanted to buy, even at a higher price than the current share price (being kr123). 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. To us, it's very important to consider the price insiders pay for 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.

IAR Systems Group insiders may have bought shares in the last year, but they didn't sell any. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

IAR Systems Group is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Based on our data, IAR Systems Group insiders have about 3.1% of the stock, worth approximately kr50m. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. We consider this fairly low insider ownership.

So What Does This Data Suggest About IAR Systems Group Insiders?

The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest IAR Systems Group insiders are well aligned, and that they may think the share price is too low. Of course, the future is what matters most. So if you are interested in IAR Systems Group, you should check out this free report on analyst forecasts for the company.

Of course IAR Systems Group 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 of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.