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Autoliv (NYSE:ALV) Stock: Bullish Insider Buys the Dip Again
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Autoliv (NYSE:ALV) Stock: Bullish Insider Buys the Dip Again

Story Highlights

A major investor with more than a 10% stake in Autoliv recently increased its holding in the stock. TipRanks also helps you find stocks that are favorites of insiders.

Last Update (September 1)

A key insider in auto components supplier Autoliv (NYSE:ALV) has returned to the market to purchase more shares in the company. Cevian Capital II GP LTD has bought additional Autoliv shares worth $27.87 million, only days after purchasing more than $21 million worth of the stock. The investor already owned over 10% of Autoliv stock and the latest purchase sees it further increase its position in the company.

Cevian Capital II GP LTD has been taking advantage of the recent dip in ALV stock to purchase more shares, thereby increasing its holdings.

Sweden-based Autoliv supplies automotive safety systems that include airbags and seatbelts. It counts all of the world’s major automakers as its customers. The company pays dividends and currently offers a dividend yield of 3.24%, which is above the sector average of 1.64%.

Insider Trading Details

As per an Securities and Exchange Commission (SEC) filing, Cevian Capital II GP LTD recently purchased 355,000 ALV shares worth $27.87 million through multiple transactions between August 29 and August 31.

Prior to this transaction, Cevian Capital II GP Ltd bought shares worth $21.17 million in the company. The purchases were made in a series of transactions between August 23 and August 25. 

Prior to the most recent transaction, Cevian Capital II GP LTD was already a major investor in Autoliv, holding more than 10% of the company. The top shareholder moved to increase its exposure to Autoliv at a time when the stock has declined about 24% year-to-date.

According to TipRanks, which also provides a comprehensive list of daily insider transactions, another Autoliv insider also made a large investment in the stock six months ago. If you would want to find out what stocks are favorites of insiders, TipRanks provides a list of hot stocks with either a Very Positive or Positive insider confidence signal.

Is ALV a Good Stock to Buy?

Wall Street is cautiously optimistic about Autoliv stock. According to TipRanks, which also provides a comprehensive list of top 25 performing insiders, ALV is a Moderate Buy based on three Buys versus seven Holds. The average Autoliv stock price prediction of $87.50 implies about 12.5% upside potential to current levels.

Closing Remarks

When a top shareholder moves to adjust its holding in a company, it is worth paying attention to. These insiders usually have a better knowledge of the company and its future plans. Therefore, the latest insider purchase of Autoliv shares comes as a vote of confidence in the stock.

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