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We’ve lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. On the other hand, we’d be remiss not to mention that insider sales have been known to precede tough periods for a business. So we’ll take a look at whether insiders have been buying or selling shares in Mekonomen AB (publ) (STO:MEKO).
Do Insider Transactions Matter?
It’s quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, most countries require that the company discloses such transactions to the market.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Harvard University study found that ‘insider purchases earn abnormal returns of more than 6% per year.’
See our latest analysis for Mekonomen
Mekonomen Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when President & CEO Pehr Oscarson bought kr1.1m worth of shares at a price of kr106 per share. So it’s clear an insider wanted to buy, even at a higher price. Their view may have changed since then, but at least it shows they felt optimistic at the time. We generally consider it a positive if insiders have been buying on market, even above the current price.
In the last twelve months insiders paid kr3.1m for 30.45k shares purchased. In the last twelve months there was more buying than selling by Mekonomen insiders. Their average price was about kr101. These transactions suggest that insiders have considered the current price of kr94.50 attractive. You can see a visual depiction of insider transactions over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Mekonomen Insiders Bought Stock Recently
Over the last three months, we’ve seen significant insider buying at Mekonomen. Overall, 4 insiders shelled out kr3.1m for shares in the company — and none sold. That shows some optimism about the company’s 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. It’s great to see that Mekonomen insiders own 6.0% of the company, worth about kr321m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.