Even if it’s not a huge purchase, we think it was good to see that Tommy Eriksson, the Chief Executive Officer of Seamless Distribution Systems AB (publ) (STO:SDS) recently shelled out kr311k to buy stock, at kr30.30 per share. That might not be a big purchase but it only increased their holding by 6.0%, and could be interpreted as a good sign.
View our latest analysis for Seamless Distribution Systems
Seamless Distribution Systems Insider Transactions Over The Last Year
In fact, the recent purchase by Tommy Eriksson was the biggest purchase of Seamless Distribution Systems shares made by an insider individual in the last twelve months, according to our records. So it’s clear an insider wanted to buy, even at a higher price than the current share price (being kr25.90). It’s very possible they regret the purchase, but it’s more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. 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.
While Seamless Distribution Systems insiders bought shares last year, they didn’t sell. You can see the insider transactions (by 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!
OM:SDS Recent Insider Trading, March 25th 2020
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Seamless Distribution Systems insiders own 22% of the company, worth about kr45m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At Seamless Distribution Systems Tell Us?
It’s certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. Given that insiders also own a fair bit of Seamless Distribution Systems we think they are probably pretty confident of a bright future. So these insider transactions can help us build a thesis about the stock, but it’s also worthwhile knowing the risks facing this company. To help with this, we’ve discovered 6 warning signs (2 don’t sit too well with us!) that you ought to be aware of before buying any shares in Seamless Distribution Systems.
But note: Seamless Distribution Systems 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, but not derivative transactions.
If you spot an error that warrants correction, please contact the editor at [email protected]. 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. Simply Wall St has no position in the stocks mentioned.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.
