Insiders Give Up kr1.2m As Aqua Bio Technology Stock Drops To kr1.87

The recent 25% drop in Aqua Bio Technology ASA's (OB:ABTEC) stock could come as a blow to insiders who purchased kr3.10m worth of stock at an average buy price of kr3.00 over the past 12 months. Insiders buy with the expectation to see their investments rise in value over a period of time. However, recent losses have rendered their above investment worth kr1.93m which is not ideal.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for Aqua Bio Technology

The Last 12 Months Of Insider Transactions At Aqua Bio Technology

Over the last year, we can see that the biggest insider purchase was by insider Jan Varming for kr3.0m worth of shares, at about kr3.00 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being kr1.87). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

Aqua Bio Technology insiders may have bought shares in the last year, but they didn't sell any. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Aqua Bio Technology Insiders Bought Stock Recently

Over the last quarter, Aqua Bio Technology insiders have spent a meaningful amount on shares. Not only was there no selling that we can see, but they collectively bought kr3.1m worth of shares. This makes one think the business has some good points.

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. Insiders own 5.5% of Aqua Bio Technology shares, worth about kr11m, according to our data. However, it's possible that insiders might have an indirect interest through a more complex structure. We do generally prefer see higher levels of insider ownership.

What Might The Insider Transactions At Aqua Bio Technology Tell Us?

The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Given that insiders also own a fair bit of Aqua Bio Technology we think they are probably pretty confident of a bright future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example, Aqua Bio Technology has 4 warning signs (and 2 which are a bit concerning) we think you should know about.

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 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.