Insider Buyers At Zaptec Recover Some Losses, But Still Down kr505k

Insiders who bought kr2.83m worth of Zaptec ASA (OB:ZAP) stock in the last year recovered part of their losses as the stock rose by 14% last week. The purchase, however, has proven to be a pricey bet, with losses currently totalling kr505k.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for Zaptec

The Last 12 Months Of Insider Transactions At Zaptec

Over the last year, we can see that the biggest insider purchase was by insider Peter Bardenfleth-Hansen for kr1.3m worth of shares, at about kr25.93 per share. That means that even when the share price was higher than kr23.20 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

Zaptec 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!

Zaptec is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

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. Our data suggests Zaptec insiders own 2.2% of the company, worth about kr44m. We prefer to see high levels of insider ownership.

What Might The Insider Transactions At Zaptec Tell Us?

It doesn't really mean much that no insider has traded Zaptec shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Overall we don't see anything to make us think Zaptec insiders are doubting the company, and they do own shares. While we like knowing 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. Every company has risks, and we've spotted 4 warning signs for Zaptec (of which 1 is significant!) you should know about.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.