Stock Analysis

Trade Alert: The Independent Chairman of the Board Of IAR Systems Group AB (publ) (STO:IAR B), Nicolas Hassbjer, Has Just Spent kr10m Buying 78% More Shares

  •  Updated
Source: Shutterstock

Those following along with IAR Systems Group AB (publ) (STO:IAR B) will no doubt be intrigued by the recent purchase of shares by Nicolas Hassbjer, Independent Chairman of the Board of the company, who spent a stonking kr10m on stock at an average price of kr104. That purchase boosted their holding by 78%, which makes us wonder if the move was inspired by quietly confident deeply-felt optimism.

See our latest analysis for IAR Systems Group

The Last 12 Months Of Insider Transactions At IAR Systems Group

In fact, the recent purchase by Nicolas Hassbjer was the biggest purchase of IAR Systems Group shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was higher than kr103 (the recent price), an insider wanted to purchase shares. 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. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

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

OM:IAR B Insider Trading Volume May 11th 2022

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

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. We usually like to see fairly high levels of insider ownership. From our data, it seems that IAR Systems Group insiders own 4.6% of the company, worth about kr65m. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. We do generally prefer see higher levels of insider ownership.

What Might The Insider Transactions At IAR Systems Group Tell Us?

It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Given that insiders also own a fair bit of IAR Systems Group we think they are probably pretty confident of a bright 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. While conducting our analysis, we found that IAR Systems Group has 1 warning sign and it would be unwise to ignore it.

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, but not derivative transactions.

Valuation is complex, but we're helping make it simple.

Find out whether IAR Systems Group is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

View the Free Analysis