Trade Alert: The Director Of Sonetel AB (publ) (STO:SONE), Peter Montgomery, Has Just Spent kr118k Buying 8.8% More Shares

Even if it's not a huge purchase, we think it was good to see that Peter Montgomery, the Director of Sonetel AB (publ) (STO:SONE) recently shelled out kr118k to buy stock, at kr4.82 per share. Although the purchase is not a big one, increasing their shareholding by only 8.8%, it can be interpreted as a good sign.

Check out our latest analysis for Sonetel

The Last 12 Months Of Insider Transactions At Sonetel

In fact, the recent purchase by Peter Montgomery was the biggest purchase of Sonetel 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 above the current price of kr4.56. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Peter Montgomery was the only individual insider to buy during the last year.

Peter Montgomery bought 45.58k shares over the last 12 months at an average price of kr5.39. 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!

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.

Does Sonetel Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Sonetel insiders own 59% of the company, worth about kr12m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About Sonetel Insiders?

The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Sonetel. One for the watchlist, at least! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Be aware that Sonetel is showing 5 warning signs in our investment analysis, and 3 of those are a bit concerning...

Of course Sonetel 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.