Insider Buyers At Lammhults Design Group Recover Some Losses, But Still Down kr851k
Insiders who bought kr2.79m worth of Lammhults Design Group AB (publ) (STO:LAMM B) stock in the last year recovered part of their losses as the stock rose by 10% last week. However, total losses seen by insiders are still kr851k since the time of purchase.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
The Last 12 Months Of Insider Transactions At Lammhults Design Group
The Independent Chairman of the Board Per Samuelsson made the biggest insider purchase in the last 12 months. That single transaction was for kr2.1m worth of shares at a price of kr34.99 each. That means that even when the share price was higher than kr23.80 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
In the last twelve months insiders purchased 81.50k shares for kr2.8m. But they sold 12.61k shares for kr374k. In total, Lammhults Design Group insiders bought more than they sold over the last year. You can see the insider transactions (by companies and individuals) 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!
See our latest analysis for Lammhults Design 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.
Lammhults Design Group Insiders Bought Stock Recently
There was some insider buying at Lammhults Design Group over the last quarter. CEO, President & Director Susanna Hilleskog bought kr104k worth of shares in that time. It's good to see the insider buying, as well as the lack of recent sellers. But in this case the amount purchased means the recent transaction may not be very meaningful on its own.
Insider Ownership
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 12% of Lammhults Design Group shares, worth about kr23m, according to our data. But they may have an indirect interest through a corporate structure that we haven't picked up on. We do generally prefer see higher levels of insider ownership.
What Might The Insider Transactions At Lammhults Design Group Tell Us?
It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Given that insiders also own a fair bit of Lammhults Design Group we think they are probably pretty confident of a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Lammhults Design Group. At Simply Wall St, we've found that Lammhults Design Group has 4 warning signs (1 is a bit concerning!) that deserve your attention before going any further with your analysis.
But note: Lammhults Design Group 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.