Stig Christiansen Bought 100% More Shares In Zaptec

Even if it's not a huge purchase, we think it was good to see that Stig Christiansen, the Deputy Chair of Zaptec ASA (OB:ZAP) recently shelled out kr963k to buy stock, at kr19.26 per share. Even though that isn't a massive buy, it did increase their holding by 100%, which is arguably a good sign.

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 Chief Executive Officer Kurt Ostrem for kr1.1m worth of shares, at about kr9.48 per share. We do like to see buying, but this purchase was made at well below the current price of kr18.13. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

While Zaptec insiders bought shares during the last year, they didn't sell. The average buy price was around kr11.25. To my mind it is good that insiders have invested their own money in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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

Does Zaptec Boast High Insider Ownership?

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 suggests Zaptec insiders own 1.9% of the company, worth about kr32m. However, it's possible that insiders might have an indirect interest through a more complex structure. We consider this fairly low insider ownership.

So What Do The Zaptec Insider Transactions Indicate?

It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Insiders likely see value in Zaptec shares, given these transactions (along with notable insider ownership of the company). So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. At Simply Wall St, we found 1 warning sign for Zaptec that deserve your attention before buying any shares.

Of course Zaptec 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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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.