Johan Larsson Bought 3.4% More Shares In Nyab

Investors who take an interest in Nyab AB (publ) (STO:NYAB) should definitely note that the CEO & Director, Johan Larsson, recently paid kr5.21 per share to buy kr1.6m worth of the stock. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 3.4%.

View our latest analysis for Nyab

Nyab Insider Transactions Over The Last Year

In fact, the recent purchase by CEO & Director Johan Larsson was not their only acquisition of Nyab shares this year. They previously made an even bigger purchase of kr2.1m worth of shares at a price of kr6.96 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being kr5.45). 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. In our view, the price an insider pays for shares is very important. 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.

Nyab insiders may have bought shares in the last year, but they didn't sell any. Their average price was about kr6.26. I'd consider this a positive as it suggests insiders see value at around the current price. 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 plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Insider Ownership Of Nyab

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. Nyab insiders own about kr297m worth of shares. That equates to 8.0% 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 Nyab Insiders?

It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Nyab. One for the watchlist, at least! 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. Every company has risks, and we've spotted 1 warning sign for Nyab you should know about.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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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