Chairman of the Board of Elanders Dan Frohm Buys 39% More Shares

Whilst it may not be a huge deal, we thought it was good to see that the Elanders AB (publ) (STO:ELAN B) Chairman of the Board, Dan Frohm, recently bought kr523k worth of stock, for kr61.65 per share. While we're hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 39%.

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Elanders Insider Transactions Over The Last Year

The President Magnus Nilsson made the biggest insider purchase in the last 12 months. That single transaction was for kr765k worth of shares at a price of kr54.64 each. We do like to see buying, but this purchase was made at well below the current price of kr61.10. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

In the last twelve months Elanders insiders were buying shares, but not selling. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

See our latest analysis for Elanders

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

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. I reckon it's a good sign if insiders own a significant number of shares in the company. From looking at our data, insiders own kr13m worth of Elanders stock, about 0.6% of the company. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. We prefer to see high levels of insider ownership.

So What Does This Data Suggest About Elanders Insiders?

The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest Elanders insiders are well aligned, and that they may think the share price is too low. While it's good to be aware of 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, Elanders has 2 warning signs (and 1 which makes us a bit uncomfortable) we think you should know about.

Of course Elanders 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.