While it might not be huge, we thought it was good to see the Scout Gaming Group AB (publ) (STO: SCOUT) Product Manager Andreas Sundal recently bought shares worth 174,000 kr, for 31.90 kr per share. Still, it only increased their stake by a tiny percentage, and it wasn’t a massive buy in absolute terms, either.
Check out our latest analysis for Scout Gaming Group
The Last 12 Months of Insider Trading at Scout Gaming Group
Notably, this recent purchase by Andreas Sundal is the biggest insider buy of Scout Gaming Group shares we’ve seen in the past year. This implies that an insider found the current price of 32.80 kr per share attractive. This means that they have been optimistic about the company in the past, even though they may have changed their mind. If someone is buying stocks at prices well below current prices, that’s a good sign overall, but keep in mind that they may not see the value anymore. Fortunately, the insider of the Scout Gaming Group decided to buy shares at a price close to the current prices. Andreas Sundal has been the only individual insider to buy in the past year.
Andreas Sundal bought 9.87k shares during the year. The average price per share was 38.33 kr. The chart below shows insider trading (by companies and individuals) over the past year. If you click on the chart, you can see all of the individual trades including the stock price, individual and date!
There are many other companies that have insiders who buy stocks. You probably do do not want to miss it free list of growing companies that insiders buy.
Insider ownership
Another way to test the alignment between a company’s executives and other shareholders is to look at how many shares they own. We generally like to see fairly high levels of insider ownership. Insiders of the Scout Gaming Group own around 114 million kr of shares. This equates to 17% 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.
What could insider trading tell us at Scout Gaming Group?
The recent insider buying is encouraging. We also trust the longer term picture of insider trading. However, we find that the company has not made a profit in the last twelve months, which makes us cautious. Once you factor in the high level of insider ownership, it sure looks like insiders are positive about Scout Gaming Group. It looks promising! So these insider trading can help us build a thesis on the stock, but it’s also worth knowing the risks this company faces. When we did our research we found 5 warning signs for Scout Gaming Group (2 are potentially serious!) Which, in our opinion, deserve your full attention.
Of course, you might find a fantastic investment looking elsewhere. So take a look at this free list of interesting companies.
For the purposes of this article, insiders are the people 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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