AB Electrolux (publ) (STO: ELUX B) CEO Petra Hedengran just bought 19% more shares


While it might not be huge, we thought it was good to see that the AB Electrolux (editor) (STO: ELUX B) Director Petra Hedengran recently bought shares worth 520,000 kroner for 208 kroner per share. While we are hesitant to get too excited about a purchase of this size, we note that it increased their stake by a solid 19%.

Check out our latest review for AB Electrolux

The last 12 months of insider trading at AB Electrolux

Over the past year, we can see that the biggest insider buy was made by Independent Chairman Staffan Bohman worth KKr 5.5 million, at around KKr 220 per share. So it is clear that an insider wanted to buy, even at a price higher than the current share price (being 218kr). It is very possible that they regret the purchase, but it is more likely that they are optimistic about the business. For us, it’s very important to consider the price insiders pay for stocks. Generally speaking, this comes to our attention when insiders bought shares at prices higher than current prices, as it suggests that they thought the shares were worth buying, even at a higher price.

Fortunately, we note that in the past year, insiders paid 13 million crowns for 60.61,000 shares. But they sold 10.20,000 shares for 2.4 million crowns. Overall, AB Electrolux insiders have been net buyers over the past year. You can see insider trading (by companies and individuals) over the past year represented in the graph below. If you click on the chart, you can see all of the individual trades including the stock price, individual and date!

OM: ELUX B Insider trading volume November 18, 2021

AB Electrolux isn’t the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider buys, might be just the ticket.

AB Electrolux insider ownership

Looking at the total insider stakes in a company can help you determine if they are aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will have an incentive to build the business for the long term. Insiders own 0.1% of AB Electrolux shares, worth around SEK 73 million, according to our data. Overall, this level of ownership isn’t that impressive, but it’s definitely better than nothing!

So what does this data suggest about AB Electrolux insiders?

The recent insider buying is encouraging. We also trust the longer term picture of insider trading. Insiders likely see value in AB Electrolux shares, given these transactions (as well as notable insider ownership of the company). So, while it is useful to know what insiders are doing in terms of buying or selling, it is also useful to know the risks that a particular company faces. In terms of investment risks, we have identified 1 warning sign with AB Electrolux and understanding this should be part of your investment process.

If you would rather consult with another company – one with potentially superior finances – then don’t miss this free list of interesting companies, which have a HIGH return on equity and low leverage.

For the purposes of this article, insiders are the persons who report their transactions to the relevant regulatory body. We currently account for open market transactions and private assignments, but not derivative transactions.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in the mentioned stocks.

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