Insiders who purchased Bonava AB (publ) (STO:BONAV B) earlier this year lose an additional kr1.2m as the stock sinks to kr26.22

Insiders who acquired kr2.1m worth of Bonava AB (publ)’s (STO:BONAV B) stock at an average price of kr61.71 in the past 12 months may be dismayed by the recent 19% price decline. Insiders invest with the hopes of seeing their money grow in value over time. However, as a result of recent losses, their initial investment is now only worth kr878k, which is not what they expected.

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.

However if you’d rather see where the opportunities and risks are within BONAV B’s industry, you can check out our analysis on the SE Consumer Durables industry.

Bonava Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Independent Chairman Mats Jonsson for kr753k worth of shares, at about kr75.33 per share. So it’s clear an insider wanted to buy, even at a higher price than the current share price (being kr26.22). Their view may have changed since then, but at least it shows they felt optimistic at the time. 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.

Bonava insiders may have bought shares in the last year, but they didn’t sell any. The average buy price was around kr61.71. These transactions suggest that insiders have considered the current price attractive. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership Of Bonava

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it’s a good sign if insiders own a significant number of shares in the company. From what we can see in our data, insiders own only about kr7.3m worth of Bonava shares. This level of insider ownership is notably low, and not very encouraging.

So What Do The Bonava Insider Transactions Indicate?

There haven’t been any insider transactions in the last three months — that doesn’t mean much. But insiders have shown more of an appetite for the stock, over the last year. We’d like to see bigger individual holdings. However, we don’t see anything to make us think Bonava insiders are doubting the company. In addition to knowing about insider transactions going on, it’s beneficial to identify the risks facing Bonava. When we did our research, we found 3 warning signs for Bonava (2 can’t be ignored!) that we believe deserve your full attention.

But note: Bonava 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, but not derivative transactions.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.