Trade Alert: The Chairman of the Board Of Capacent Holding AB (publ) (STO:CAPAC), Joakim Hörwing, Has Just Spent kr542k Buying Shares

Whilst it may not be a huge deal, we thought it was good to see that the Capacent Holding AB (publ) (STO:CAPAC) Chairman of the Board, Joakim Hörwing, recently bought kr542k worth of stock, for kr18.08 per share. While we're hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 10%.

Check out our latest analysis for Capacent Holding

Capacent Holding Insider Transactions Over The Last Year

In fact, the recent purchase by Joakim Hörwing was the biggest purchase of Capacent Holding shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, at around the current price, which is kr20.70. 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. In this case we're pleased to report that the insider purchases were made at close to current prices.

Capacent Holding insiders may have bought shares in the last year, but they didn't sell any. Their average price was about kr20.62. These transactions show that insiders have confidence to invest their own money in the stock, albeit at slightly below the recent price. The chart below shows insider transactions (by individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

OM:CAPAC Recent Insider Trading April 1st 2020
OM:CAPAC Recent Insider Trading April 1st 2020

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.

Insider Ownership of Capacent Holding

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. 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's great to see that Capacent Holding insiders own 46% of the company, worth about kr26m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The Capacent Holding Insider Transactions Indicate?

It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Capacent Holding. Looks promising! While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Case in point: We've spotted 4 warning signs for Capacent Holding you should be aware of, and 1 of them shouldn't be ignored.