Daniel Fitzgerald Bought 38% More Shares In Orrön Energy

Whilst it may not be a huge deal, we thought it was good to see that the Orrön Energy AB (publ) (STO:ORRON) Chief Executive Officer, Daniel Fitzgerald, recently bought kr625k worth of stock, for kr6.25 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 38%.

Check out our latest analysis for Orrön Energy

The Last 12 Months Of Insider Transactions At Orrön Energy

In fact, the recent purchase by Chief Executive Officer Daniel Fitzgerald was not their only acquisition of Orrön Energy shares this year. Earlier in the year, they paid kr15.97 per share in a kr1.0m purchase. That means that even when the share price was higher than kr6.91 (the recent price), an insider wanted to purchase shares. 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. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

In the last twelve months Orrön Energy insiders were buying shares, but not selling. They paid about kr11.27 on average. I'd consider this a positive as it suggests insiders see value at around the current price. 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!

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.

Insider Ownership

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Based on our data, Orrön Energy insiders have about 0.8% of the stock, worth approximately kr15m. However, it's possible that insiders might have an indirect interest through a more complex structure. We prefer to see high levels of insider ownership.

What Might The Insider Transactions At Orrön Energy Tell Us?

The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest Orrön Energy insiders are well aligned, and that they may think the share price is too low. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

Of course Orrön Energy 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.

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.