As Train Alliance Sweden AB (publ) (STO: TRAIN B) market capitalization increased by SEK 198 million, insiders who bought last year may consider buying more
When an individual insider buys shares, it is usually not a big deal. But when several insiders buy, as in the case of Train Alliance Sweden AB (publ) (STO: TRĂ…G B), it sends a positive message to the company’s shareholders.
Although insider transactions are not the most important thing when it comes to long-term investments, we think it is completely logical to keep track of what insiders do.
Check out our latest analysis for Train Alliance Sweden
Train Alliance Sweden Insider transactions over the past year
During the past year, we can see that the largest insider purchase was made by Chairman of the Board Otto Persson for shares worth SEK 3.5 million, at approximately SEK 70.70 per share. Even though the purchase was made at a significantly lower price than the latest price (SEK 82.50), we still think that insider purchases are positive. Since the shares were bought at a lower price, this particular purchase does not tell us much about how insiders think about the current share price.
Happily, we note that during the past year, insiders paid SEK 3.6 million for 50.26,000 shares. On the other hand, they sold 13.82,000 shares for SEK 1.0 million. In the last twelve months, there have been more purchases than sold by Train Alliance Sweden insiders. You can see the insider transactions (by companies and individuals) during the past year as shown in the chart below. If you want to know exactly who sold, for how much and when, just click on the graph below!
There are always plenty of stocks that insiders buy. So if it suits your style, you can check each layer one by one or you can take a look at it here free list of companies. (Hint: insiders have bought them).
Insiders at Train Alliance Sweden have sold shares recently
Over the past three months, we have seen significant insider sales at Train Alliance Sweden. In total, director Sven Jemsten sold shares for SEK 1.0 million during that time, and we did not register any purchases at all. This may indicate that some insiders think that the shares are not cheap.
Insider ownership of Train Alliance Sweden
Another way to test the adjustment 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 motivated to build the company in the long run. It seems that Train Alliance Sweden insiders own 17% of the company, worth approximately SEK 377 million. Although this is a strong but not outstanding level of insider ownership, it is sufficient to indicate a certain adjustment between management and smaller shareholders.
So what does the Train Alliance Sweden Insider Transactions indicate?
An insider has not bought Train Alliance Sweden shares in the past three months, but there have been some sales. On the other hand, they seem sharper if you look at the last twelve months. And the insider ownership is still quite large. So we are not so bothered by recent sales. So these insider transactions can help us build a dissertation on the stock, but it is also worth knowing the risks that this company faces. It shows our analysis 4 warning signs for Train Alliance Sweden (3 are a bit unpleasant!) And we strongly recommend that you look at these before investing.
But note: Train Alliance Sweden may not be the best stock to buy. So take a look at this free list of interesting companies with high ROE and low indebtedness.
In this article, insiders are the individuals who report their transactions to the relevant regulatory body. We currently report open market transactions and private transactions, but not derivative transactions.
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This article by Simply Wall St is general in nature. We provide comments based on historical data and analyst forecasts only using an impartial method and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any shares and does not take into account your goals or your financial situation. We strive to provide you with long-term focused analysis driven by basic data. Please note that our analysis may not take into account the latest price sensitive company announcements or qualitative material. Simply Wall St has no position in any of the shares mentioned.