The Director of Aqua Bio Technology ASA (OB:ABT), Roger Hofseth, Just Bought A Few More Shares

Whilst it may not be a huge deal, we thought it was good to see that the Aqua Bio Technology ASA (OB:ABT) Director, Roger Hofseth, recently bought kr141k worth of stock, for kr5.64 per share. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.

See our latest analysis for Aqua Bio Technology

Aqua Bio Technology Insider Transactions Over The Last Year

The Chief Executive Officer Espen Kvale made the biggest insider purchase in the last 12 months. That single transaction was for kr1.1m worth of shares at a price of kr2.15 each. Even though the purchase was made at a significantly lower price than the recent price (kr6.15), we still think insider buying is a positive. 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.

Over the last year, we can see that insiders have bought 975.00k shares worth kr2.2m. But insiders sold 475.00k shares worth kr1.0m. In total, Aqua Bio Technology insiders bought more than they sold over the last year. 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!

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Aqua Bio Technology insiders own 36% of the company, worth about kr41m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The Aqua Bio Technology Insider Transactions Indicate?

The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest Aqua Bio Technology insiders are well aligned, and that they may think the share price is too low. 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. Our analysis shows 4 warning signs for Aqua Bio Technology (2 are a bit concerning!) and we strongly recommend you look at them before investing.

But note: Aqua Bio Technology 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, but not derivative transactions.

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This article by Simply Wall St is general in nature. 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.
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