Director of NOTE Johan Hagberg Buys More Stock

Even if it's not a huge purchase, we think it was good to see that Johan Hagberg, the Director of NOTE AB (publ) (STO:NOTE) recently shelled out kr600k to buy stock, at kr148 per share. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.

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NOTE Insider Transactions Over The Last Year

Notably, that recent purchase by Director Johan Hagberg was not the only time they traded NOTE shares this year. Earlier in the year, they sold shares at a price ofkr153 per share in a -kr110m transaction. That means that an insider was selling shares at around the current price of kr148. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

Happily, we note that in the last year insiders paid kr1.5m for 11.35k shares. But insiders sold 793.30k shares worth kr120m. Over the last year we saw more insider selling of NOTE shares, than buying. 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!

If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. NOTE insiders own about kr1.1b worth of shares. That equates to 26% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At NOTE Tell Us?

It's certainly positive to see the recent insider purchases. On the other hand the transaction history, over the last year, isn't so positive. Overall, we'd prefer see a more sustained buying from directors, but with a significant insider holding and more recent purchases, NOTE insiders are reasonably well aligned, and optimistic for the future. Of course, the future is what matters most. So if you are interested in NOTE, you should check out this free report on analyst forecasts for the company.

But note: NOTE may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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 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.