Reversal Of Fortune For Green Landscaping Group Insiders Who Made A kr24.1m Purchase
Insiders who bought kr24.1m worth of Green Landscaping Group AB (publ) (STO:GREEN) stock in the last year have seen some of their losses recouped as the stock gained 22% last week. However, the purchase is proving to be an expensive wager as insiders are yet to get ahead of their losses which currently stand at kr9.0m since the time of purchase.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
Green Landscaping Group Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Director Staffan Salen bought kr24m worth of shares at a price of kr31.50 per share. That means that an insider was happy to buy shares at above the current price of kr19.80. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. In our view, the price an insider pays for shares is very important. 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.
In the last twelve months Green Landscaping Group insiders were buying shares, but not selling. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
Check out our latest analysis for Green Landscaping Group
Green Landscaping Group is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Insider Ownership
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data indicates that Green Landscaping Group insiders own about kr96m worth of shares (which is 8.6% of the company). But they may have an indirect interest through a corporate structure that we haven't picked up on. Whilst better than nothing, we're not overly impressed by these holdings.
What Might The Insider Transactions At Green Landscaping Group Tell Us?
It doesn't really mean much that no insider has traded Green Landscaping Group shares in the last quarter. However, our analysis of transactions over the last year is heartening. Insiders own shares in Green Landscaping Group and we see no evidence to suggest they are worried about the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Green Landscaping Group. Our analysis shows 3 warning signs for Green Landscaping Group (1 is a bit unpleasant!) and we strongly recommend you look at them before investing.
But note: Green Landscaping Group 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 of direct interests only, but not derivative transactions or indirect interests.
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