CellaVision AB (publ) (STO:CEVI) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 10% resulting in a kr425m addition to the company’s market value. In other words, the original kr65.7m purchase is now worth kr93.0m.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
CellaVision Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Founder & Director Christer Fahraeus bought kr32m worth of shares at a price of kr126 per share. We do like to see buying, but this purchase was made at well below the current price of kr188. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
Christer Fahraeus bought 495.00k shares over the last 12 months at an average price of kr133. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
Check out our latest analysis for CellaVision
CellaVision is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.
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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 8.2% of CellaVision shares, worth about kr368m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About CellaVision Insiders?
There haven't been any insider transactions in the last three months -- that doesn't mean much. However, our analysis of transactions over the last year is heartening. Judging from their transactions, and high insider ownership, CellaVision insiders feel good about the company's future. Of course, the future is what matters most. So if you are interested in CellaVision, you should check out this free report on analyst forecasts for the company.
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 of direct interests only, but not derivative transactions or indirect interests.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.