Pleasing Signs As A Number Of Insiders Buy Egetis Therapeutics Stock

When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Egetis Therapeutics AB (publ)'s (STO:EGTX) instance, it's good news for shareholders.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

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Egetis Therapeutics Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Chief Financial Officer, Yilmaz Mahshid, for kr1.4m worth of shares, at about kr6.82 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of kr5.30. So it may not tell us anything about how insiders feel about the current share price. Yilmaz Mahshid was the only individual insider to sell shares in the last twelve months.

Happily, we note that in the last year insiders paid kr1.5m for 308.56k shares. But insiders sold 213.09k shares worth kr1.4m. In the last twelve months there was more buying than selling by Egetis Therapeutics insiders. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

See our latest analysis for Egetis Therapeutics

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Egetis Therapeutics Insiders Bought Stock Recently

It's good to see that Egetis Therapeutics insiders have made notable investments in the company's shares. Chairman of the Board Mats Blom spent kr1.1m on stock, and there wasn't any selling. This could be interpreted as suggesting a positive outlook.

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Egetis Therapeutics insiders own about kr215m worth of shares. That equates to 10% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Egetis Therapeutics Tell Us?

The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest Egetis Therapeutics insiders are well aligned, and quite possibly think the share price is too low. One for the watchlist, at least! While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. You'd be interested to know, that we found 1 warning sign for Egetis Therapeutics and we suggest you have a look.

But note: Egetis Therapeutics may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.