Even if it’s not a huge purchase, we think it was good to see that Martin Roos, the Independent Director of Seamless Distribution Systems AB (publ) (STO:SDS) recently shelled out kr222k to buy stock, at kr31.34 per share. Although the purchase is not a big one, increasing their shareholding by only 2.2%, it can be interpreted as a good sign.
View our latest analysis for Seamless Distribution Systems
Seamless Distribution Systems Insider Transactions Over The Last Year
Notably, that recent purchase by Martin Roos is the biggest insider purchase of Seamless Distribution Systems shares that we’ve seen in the last year. That implies that an insider found the current price of kr34.00 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. While we always like to see insider buying, it’s less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for Seamless Distribution Systems share holders is that insiders were buying at near the current price.
Over the last year, we can see that insiders have bought 14.50k shares worth kr535k. But insiders sold 2.50k shares worth kr115k. Overall, Seamless Distribution Systems insiders were net buyers during the last year. The average buy price was around kr36.89. This is nice to see since it implies that insiders might see value around current prices (around kr34.00). The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Seamless Distribution Systems 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 Seamless Distribution Systems
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Insiders own 22% of Seamless Distribution Systems shares, worth about kr79m. While this is a strong but not outstanding level of insider ownership, it’s enough to indicate some alignment between management and smaller shareholders.
So What Do The Seamless Distribution Systems Insider Transactions Indicate?
The recent insider purchase is heartening. 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. When combined with notable insider ownership, these factors suggest Seamless Distribution Systems insiders are well aligned, and that they may think the share price is too low. In addition to knowing about insider transactions going on, it’s beneficial to identify the risks facing Seamless Distribution Systems. Be aware that Seamless Distribution Systems is showing 3 warning signs in our investment analysis, and 1 of those makes us a bit uncomfortable…
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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, but not derivative transactions.
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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.
