Even if it’s not a huge purchase, we think it was good to see that Per Witalisson, the Chief Executive Officer of Eolus Vind AB (publ) (STO:EOLU B) recently shelled out kr155k to buy stock, at kr205 per share. Although the purchase is not a big one, increasing their shareholding by only 1.7%, it can be interpreted as a good sign.
Eolus Vind Insider Transactions Over The Last Year
In fact, the recent purchase by Per Witalisson was the biggest purchase of Eolus Vind shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was higher than kr201 (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. In our view, the price an insider pays for shares is very important. 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 Eolus Vind insiders were buying shares, but not selling. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Eolus Vind is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership of Eolus Vind
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it’s a good sign if insiders own a significant number of shares in the company. Insiders own 9.1% of Eolus Vind shares, worth about kr453m. 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 Eolus Vind Insiders?
It is good to see recent purchasing. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest Eolus Vind insiders are well aligned, and quite possibly think the share price is too low. That’s what I like to see! In addition to knowing about insider transactions going on, it’s beneficial to identify the risks facing Eolus Vind. Be aware that Eolus Vind is showing 3 warning signs in our investment analysis, and 2 of those are potentially serious…
If you would prefer to check out another company — one with potentially superior financials — then do not miss this free list of interesting companies, that have HIGH return on equity 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, but not derivative transactions.
If you’re looking to trade Eolus Vind, open an account with the lowest-cost* platform trusted by professionals, Interactive Brokers. Their clients from over 200 countries and territories trade stocks, options, futures, forex, bonds and funds worldwide from a single integrated account.
This article by Simply Wall St is general in nature. 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.
*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.