Insider Buying

Insider Buying Report: Karnov Group AB (KAR:SS)

Karnov Group AB
(KAR:SS)
12 months:
+10%
Activity:
Bullish
Pattern:
Purchase from CEO and multiple insiders
News:
Large acquisitions
Karnov Group AB
(KAR:SS)
12 months:
+10%
Activity:
Bullish
Pattern:
Purchase from CEO and multiple insiders
News:
Large acquisitions

If multiple insiders are buying company stock within a short period of time, it’s often worth taking a closer look. This buying pattern – which is known as ‘cluster buying’ – is a particularly strong insider trading signal.

Here, we are going to highlight cluster buying at Karnov Group AB (KAR:SS). Karnov Group is the largest provider of professional information solutions in Scandinavia, focusing on auditing, legal, and tax. It’s listed on the Nasdaq Stockholm Stock Exchange and currently has a market capitalization of SEK 6.1 billion.

Karnov Group AB: Insider Buying

Our insider transaction data shows that between December 9 and December 10, five insiders at Karnov Group bought stock. Those who picked up shares were:

  • President and CEO Pontus Bodelsson (15,000 shares @ SEK 65.59 per share)
  • Chairman of the Board Magnus Mandersson (50,000 shares @ SEK 67.39 per share)
  • Independent Director Ulf Bonnevier (15,000 shares @ SEK 68.33 per share)
  • Independent Director Salla Vainio (3,000 shares @ SEK 65.00 per share)
  • Director Loris Barisa (2,000 shares @ SEK 65.40 per share)

In total, the five insiders spent around SEK 5.7 million (approx. USD $630,000) on Karnov Group stock.

The graph highlights important buy and sell events during the history of Karnov Group AB's price.

Large Number of Insiders Buying Stock

We believe this insider buying is noteworthy for a number of reasons.

Firstly, five insiders have bought stock simultaneously. This suggests that sentiment within the business is extremely bullish. It’s not often that we see five insiders at the same company buying stock together. It’s worth noting that a significant amount of money has been spent on Karnov Group stock which suggests the insiders are confident the stock is set to move higher.

Secondly, the CEO has bought stock, which is very significant. He is likely to understand the business better than anyone else and is best placed to spot changes in trends within a business and potential for an uptick in earnings.

Major Acquisitions

Karnov Group recently announced substantial acquisitions that will give it a presence outside of Scandinavia.

Earlier this month, the company signed a binding offer to buy the entire share capital of Wolters Kluwer France, Wolters Kluwer Spain, and Thomson Reuters Spain for a cash consideration of approximately €160 million. This deal allows Karnov Group to become a European player with a strong presence in France and Spain. The transaction entities have unaudited pro forma revenues of SEK 1.299 billion and EBITDA of SEK 179.3 million.

“Karnov Group is a Nordic leader within legal information services with a solid track record from geographical expansion, which we proved with the acquisition and integration of Norstedts Juridik in 2018. Building on our experiences from previous expansions, we are encouraged to continue growing into other geographies. The Contemplated Transaction would transform us from a Nordic market leader to a European player, providing a platform for accelerated expansion and significant value creation for our customers and shareholders,” said Pontus Bodelsson, the CEO of Karnov.

Having read the CEO’s positive remarks we believe the recent insider buying at Karnov Group is bullish. It would suggest that the CEO and several insiders believe that the deal is transformational and that it will lead to the share price moving upwards as a result.

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