Jan Svensson Bought 32% More Shares In Fagerhult Group

Even if it's not a huge purchase, we think it was good to see that Jan Svensson, the Independent Chairman of Fagerhult Group AB (STO:FAG) recently shelled out kr504k to buy stock, at kr16.79 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 32%.

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The Last 12 Months Of Insider Transactions At Fagerhult Group

In fact, the recent purchase by Independent Chairman Jan Svensson was not their only acquisition of Fagerhult Group shares this year. They previously made an even bigger purchase of kr591k worth of shares at a price of kr39.41 per share. That means that an insider was happy to buy shares at above the current price of kr17.18. Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

Happily, we note that in the last year insiders paid kr1.9m for 64.40k shares. But they sold 6.25k shares for kr238k. In the last twelve months there was more buying than selling by Fagerhult Group insiders. Their average price was about kr28.81. This is nice to see since it implies that insiders might see value around current prices. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Check out our latest analysis for Fagerhult Group

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Fagerhult Group insiders own 3.5% of the company, worth about kr106m. 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 Fagerhult Group Tell Us?

The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Fagerhult Group. That's what I like to see! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Fagerhult Group. While conducting our analysis, we found that Fagerhult Group has 2 warning signs and it would be unwise to ignore these.

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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.