Insider Spends kr1.0m Buying More Shares In Knowit

Even if it's not a huge purchase, we think it was good to see that Per Wallentin, the President & CEO of Knowit AB (publ) (STO:KNOW) recently shelled out kr1.0m to buy stock, at kr183 per share. That purchase might not be huge but it did increase their holding by 11%.

See our latest analysis for Knowit

The Last 12 Months Of Insider Transactions At Knowit

In fact, the recent purchase by Per Wallentin was the biggest purchase of Knowit shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at around the current price of kr188. 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. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. The good news for Knowit share holders is that insiders were buying at near the current price.

In the last twelve months insiders purchased 26.27k shares for kr3.9m. But insiders sold 1.21k shares worth kr179k. In the last twelve months there was more buying than selling by Knowit insiders. Their average price was about kr150. To my mind it is good that insiders have invested their own money in the company. But we must note that the investments were made at well below today's share price. 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!

Knowit 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 Of Knowit

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. From our data, it seems that Knowit insiders own 1.7% of the company, worth about kr85m. We do generally prefer see higher levels of insider ownership.

So What Does This Data Suggest About Knowit Insiders?

It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest Knowit insiders are well aligned, and that they may think the share price is too low. 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. At Simply Wall St, we found 2 warning signs for Knowit that deserve your attention before buying any shares.

Of course Knowit 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.