Screening the current newsflow on the Swedish small-cap lists, we noticed unusually high insider buying in First North listed Invisio Communication. On Wednesday April 2nd, the company announced that management bought in total 470,000 shares. Looking at the share price prior to the announcement of around SEK 8, this implies a combined value of SEK 3,800,000. That’s quite a lot of money for such a small company.
Invisios’s CEO Lars Höjgård Hansen bought 225,000 shares and owns after the transaction 410,000 shares. CFO Thomas Larsson bought 100,000 shares and owns after the transaction 135,000 shares. Furthermore, Invisio’s Heads of Sales and of R&D bought 75,000 and 70,000 shares respectively.
What’s even more remarkable is the fact that the insider purchases came after an already very strong share price run in recent months. Invisio’s share is up a cool 50% year-to-date following a stream of new orders for the company’s communication and hearing protection systems, amongst others from the US military.
It seems as if more positive news could be on the horizon for Invisio. After all, who knows better than management about ongoing negotiations and tenders made? Our guess is that the current conflict in the Ukraine will lead to increased defense spending in the coming years. Both NATO and US military have already placed initial orders and it seems likely that there is more to come.