Insiders who bought Zaplox AB (publ) (STO:ZAPLOX) stock in the last 12 months were richly rewarded last week. The company's market value increased by kr5.1m as a result of the stock's 15% gain over the same period. In other words, the original kr1.12m purchase is now worth kr1.34m.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
The Last 12 Months Of Insider Transactions At Zaplox
The Chairman of the Board, Jonas Hardner, made the biggest insider sale in the last 12 months. That single transaction was for kr705k worth of shares at a price of kr0.81 each. That means that an insider was selling shares at slightly below the current price (kr1.09). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. It is worth noting that this sale was 75% of Jonas Hardner's holding. The only individual insider seller over the last year was Jonas Hardner. Notably Jonas Hardner was also the biggest buyer, having purchased kr1.1m worth of shares.
Happily, we note that in the last year insiders paid kr1.1m for 1.24m shares. But they sold 875.00k shares for kr705k. Overall, Zaplox insiders were net buyers during the last year. They paid about kr0.91 on average. We don't deny that it is nice to see insiders buying stock in the company. However, we do note that they were buying at significantly lower prices than today's share price. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
View our latest analysis for Zaplox
Zaplox is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Insider Ownership Of Zaplox
For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Our data indicates that Zaplox insiders own about kr4.9m worth of shares (which is 13% of the company). But they may have an indirect interest through a corporate structure that we haven't picked up on. Whilst better than nothing, we're not overly impressed by these holdings.
So What Does This Data Suggest About Zaplox Insiders?
The fact that there have been no Zaplox insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. We'd like to see bigger individual holdings. However, we don't see anything to make us think Zaplox insiders are doubting the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Zaplox. Case in point: We've spotted 4 warning signs for Zaplox you should be aware of, and 2 of these are concerning.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.