We often see insiders buying up shares in companies that perform well over the long term. Unfortunately,lg 27gr95qe-b firmware update there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So shareholders might well want to know whether insiders have been buying or selling shares in
Alfa Laval AB (publ)
(
STO:ALFA
).
What Is Insider Buying?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, most countries require that the company discloses such transactions to the market.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. As Peter Lynch said, ‘insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.’
View our latest analysis for Alfa Laval
The Last 12 Months Of Insider Transactions At Alfa Laval
In the last twelve months, the biggest single purchase by an insider was when President & CEO Tom Erixon bought kr2.0m worth of shares at a price of kr203 per share. That means that even when the share price was higher, 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. We generally consider it a positive if insiders have been buying on market, even above the current price.
Over the last year, we can see that insiders have bought 22.00k shares worth kr4.4m. Overall, Alfa Laval insiders were net buyers last year. The average buy price was around kr200. These transactions suggest that insiders have considered the current price of kr190 attractive. You can see the insider transactions 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!
OM:ALFA Insider Trading January 2nd 19
If you like to buy stocks alongside management, then you might just love this
free
list of companies. (Hint: insiders have been buying them).
Alfa Laval Insiders Bought Stock Recently
It’s good to see that Alfa Laval insiders have made notable investments in the company’s shares. In total, insiders bought kr2.4m worth of shares in that time, and we didn’t record any sales whatsoever. This makes one think the business has some good points.
Does Alfa Laval Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. I reckon it’s a good sign if insiders own a significant number of shares in the company. Alfa Laval insiders own about kr158m worth of shares (which is 0.2% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
Story continues
So What Do The Alfa Laval Insider Transactions Indicate?
It is good to see recent purchasing. 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 Alfa Laval. One for the watchlist, at least! 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
Alfa Laval may not be the best stock to buy
. So you may wish to see this
free
collection of high quality companies.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at
.
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