Insider Buying

Insider Buying Report: Sandvik AB (SAND:SS)

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Sandvik AB
(SAND:SS)
12 months:
+33%
Activity:
Bullish
Pattern:
Large purchases from two institutional investors
News:
Good Q3 results
Sandvik AB
(SAND:SS)
12 months:
+33%
Activity:
Bullish
Pattern:
Large purchases from two institutional investors
News:
Good Q3 results

Corporate insiders tend to have the most up-to-date information on their companies’ operations. If they’re buying company stock, it’s often a sign that business performance is strong and that the outlook for the stock is favorable.

Here, we are going to highlight some interesting insider buying at Sandvik AB (SAND:SS). Sandvik is an engineering company that operates in the areas of mining and rock excavation, metal cutting, and materials technology worldwide. The company, which has a global presence, is a leader in tools and tooling systems for industrial metal cutting, technical solutions for the mining and construction industries, and advanced stainless steels and special alloys. It’s listed on the Stockholm Stock Exchange and currently has a market capitalization of SEK 278 billion.

Sandvik: Insider Buying

Our data shows that there have been several large insider purchases at Sandvik recently.

The largest buys were from 10% owner AB Industrivärden, which purchased 2.5 million shares at an average price of SEK 217.88 per share between October 19 and October 20. This trading activity cost the institution around SEK 545 million (approx. USD $63 million).

Investment company L E Lundbergföretagen AB has also made substantial purchases, picking up one million shares between October 21 and October 22 at an average price of SEK 222.75. This trading activity cost the institution SEK 222.7 million (approx.. USD $26 million).

Meanwhile, board member Claes Boustedt has bought stock for his own account. He picked up 10,000 shares on October 19 at a price of SEK 218.22 per share, spending SEK 2.2 million (approx.. USD $253,245) on the stock.

Sandvik AB price chart showing notable buy and sell events

Representatives on the Board

All of these insiders are likely to have a good understanding of Sandvik’s intrinsic value. 10% owner AB Industrivärden has a representative on the board at Sandvik. That’s Helena Stjernholm, who has served as President and CEO of AB Industrivärden since 2015. L E Lundbergföretagen AB also has a representative on the board. That’s Claes Boustedt, who has served as Executive Vice President of L E Lundbergföretagen AB since 1997.

Good Q3 Results

Sandvik’s recent third-quarter results were good.

For the period, order intake increased organically by 21% to SEK 26,292 million, driven by robust demand across the business. Total order intake growth, at fixed exchange rates, was 31%. Meanwhile, revenue was up 13% on an organic basis and 23% at fixed exchange rates. Adjusted earnings per share came in at SEK 3.03 versus SEK 2.09 a year earlier.

Looking ahead, management was confident in relation to the outlook. “As a growth-focused, resilient and high-performing company, and with an underlying demand for our solutions, Sandvik is well positioned to execute on profitable growth, and to deliver long-term shareholder value,” said President and CEO, Stefan Widing.

In light of this performance, we see the insider buying here as a bullish indicator.

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