While it might not be huge, we thought it was good to see that the Geo AB guideline (published) (STO: GGEO) Kerstin Bergengren, director of human resources, recently bought shares for 83,000 crowns, for 8.27 crowns 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 33%.
See our latest review for Guideline Geo
Guideline on Geo Insider Trading Over the Past Year
Notably, this recent buy by Kerstin Bergengren is the biggest insider buy of Guideline Geo shares we’ve seen in the past year. This means that an insider was happy to buy shares at the current price of Kroner 8.48. Of course, maybe they changed their mind. But it does suggest that they are optimistic. While we still love to see insider buys, it makes less sense if the buys were made at much lower prices, as the opportunity they saw may have passed. Fortunately, the Guideline Geo insider decided to buy shares at prices close to current prices. Kerstin Bergengren was the only individual insider to buy in the past year.
The chart below shows insider trading (by businesses and individuals) over the past year. If you want to know exactly who sold, for how much and when, just click on the graph below!
There are always a lot of stocks that insiders buy. So if it suits your style, you can check each stock one by one or you can take a look at this free list of companies. (Hint: the insiders bought them).
Does Guideline Geo pride itself on strong insider ownership?
Many investors like to check how well a company is owned by insiders. 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 of the Geo guideline own around 30 million crowns of shares. This equates to 33% of the business. We’ve certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest an alignment between insiders and other shareholders.
So what does the Geo Insider Trading Directive say?
It’s certainly positive to see the recent insider buy. We also trust the longer term picture of insider trading. However, we note that the company has not made a profit in the past twelve months, which makes us cautious. Insiders likely see value in Guideline Geo shares, given these transactions (as well as the company’s notable insider ownership). So these insider trading can help us build a thesis on the stock, but it’s also worth knowing the risks this business faces. At Simply Wall St, we found 2 warning signs for the Geo guideline that deserve your attention before buying stocks.
Sure Geo guideline may not be the best stock to buy. So you might want to see this free collection of high quality companies.
For the purposes of this article, insiders are those persons who report their transactions to the relevant regulatory body. We currently account for open market transactions and private assignments, but not derivative transactions.
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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 any stock 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 any of the stocks mentioned.
