Genovis AB (publ.) (STO:GENO) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 12%, resulting in a kr169m rise in the company's market capitalisation, translating to a gain of 29% on their initial investment. As a result, their original purchase of kr1.80m worth of stock is now worth kr2.31m.
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.
Genovis AB (publ.) Insider Transactions Over The Last Year
The Independent Chairman of the Board Torben Jorgensen made the biggest insider purchase in the last 12 months. That single transaction was for kr849k worth of shares at a price of kr18.87 each. We do like to see buying, but this purchase was made at well below the current price of kr23.75. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
Genovis AB (publ.) insiders may have bought shares in the last year, but they didn't sell any. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
See our latest analysis for Genovis AB (publ.)
Genovis AB (publ.) is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Genovis AB (publ.) Insiders Bought Stock Recently
Over the last three months, we've seen significant insider buying at Genovis AB (publ.). In total, insiders bought kr1.4m worth of shares in that time, and we didn't record any sales whatsoever. This could be interpreted as suggesting a positive outlook.
Insider Ownership
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Genovis AB (publ.) insiders own about kr260m worth of shares. That equates to 16% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Does This Data Suggest About Genovis AB (publ.) Insiders?
The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Genovis AB (publ.). That's what I like to see! 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. While conducting our analysis, we found that Genovis AB (publ.) has 1 warning sign and it would be unwise to ignore this.
Of course Genovis AB (publ.) may not be the best stock to buy. So you may wish to see this free collection of high quality 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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