Director of AB Volvo Picks Up 16,250% More Stock

Those following along with AB Volvo (publ) (STO:VOLV B) will no doubt be intrigued by the recent purchase of shares by Helena Stjernholm, Director of the company, who spent a stonking kr469m on stock at an average price of kr361. That purchase boosted their holding by 16,250%, which makes us wonder if the move was inspired by quietly confident deeply-felt optimism.

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AB Volvo Insider Transactions Over The Last Year

Notably, that recent purchase by Director Helena Stjernholm was not the only time they bought AB Volvo shares this year. They previously made an even bigger purchase of kr482m worth of shares at a price of kr255 per share. We do like to see buying, but this purchase was made at well below the current price of kr364. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

In the last twelve months AB Volvo insiders were buying shares, but not selling. Their average price was about kr291. It is certainly positive to see that insiders have invested their own money in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. 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 AB Volvo

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 Of AB Volvo

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that AB Volvo insiders own 4.4% of the company, worth about kr33b. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The AB Volvo Insider Transactions Indicate?

The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about AB Volvo. Looks promising! 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. Our analysis shows 2 warning signs for AB Volvo (1 can't be ignored!) and we strongly recommend you look at these before investing.

But note: AB Volvo may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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.