Stock Analysis

Trade Alert: The Independent Chairman of the Board Of Firefly AB (publ) (STO:FIRE), Erik Mitteregger, Has Just Spent kr562k Buying A Few More Shares

OM:FIRE
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Whilst it may not be a huge deal, we thought it was good to see that the Firefly AB (publ) (STO:FIRE) Independent Chairman of the Board, Erik Mitteregger, recently bought kr562k worth of stock, for kr57.84 per share. Nevertheless, it only increased their shareholding by a minuscule percentage, and it wasn't a massive purchase by absolute value, either.

View our latest analysis for Firefly

Firefly Insider Transactions Over The Last Year

In fact, the recent purchase by Independent Chairman of the Board Erik Mitteregger was not their only acquisition of Firefly shares this year. Earlier in the year, they paid kr52.24 per share in a kr2.1m purchase. That implies that an insider found the current price of kr58.00 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. 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. In this case we're pleased to report that the insider purchases were made at close to current prices.

In the last twelve months Firefly insiders were buying shares, but not selling. 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!

insider-trading-volume
OM:FIRE Insider Trading Volume February 20th 2021

Firefly is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Does Firefly Boast High 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. Firefly insiders own 60% of the company, currently worth about kr205m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About Firefly Insiders?

It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Firefly. That's what I like to see! 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. For example - Firefly has 1 warning sign we think you should be aware of.

Of course Firefly 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.

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This article by Simply Wall St is general in nature. 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.
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