Insider Stock Buying Reaches kr89.6m On ASSA ABLOY
Over the last year, a good number of insiders have significantly increased their holdings in ASSA ABLOY AB (publ) (STO:ASSA B). This is encouraging because it indicates that insiders are more optimistic about the company's prospects.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
The Last 12 Months Of Insider Transactions At ASSA ABLOY
Over the last year, we can see that the biggest insider purchase was by President Nico Delvaux for kr30m worth of shares, at about kr354 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being kr352). It's very possible they regret the purchase, but it's more likely they are bullish about the company. 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.
Over the last year, we can see that insiders have bought 256.78k shares worth kr90m. On the other hand they divested 20.32k shares, for kr7.1m. Overall, ASSA ABLOY insiders were net buyers during the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
See our latest analysis for ASSA ABLOY
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).
ASSA ABLOY Insiders Bought Stock Recently
There has been significantly more insider buying, than selling, at ASSA ABLOY, over the last three months. In total, five insiders bought kr14m worth of shares in that time. But insiders only sold shares worth kr5.7m. The buying outweighs the selling, which suggests that insiders may believe the company will do well in the future.
Insider Ownership
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 0.1% of ASSA ABLOY shares, worth about kr371m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About ASSA ABLOY Insiders?
It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest ASSA ABLOY insiders are well aligned, and quite possibly think the share price is too low. One for the watchlist, at least! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing ASSA ABLOY. You'd be interested to know, that we found 1 warning sign for ASSA ABLOY and we suggest you have a look.
Of course ASSA ABLOY 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.
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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.