Stock Analysis

TC TECH Sweden AB (publ) (STO:TCT) drops to kr106m and insiders who purchased earlier this year lose another kr61k

OM:TCT
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The recent price decline of 13% in TC TECH Sweden AB (publ)'s (STO:TCT) stock may have disappointed insiders who bought kr443k worth of shares at an average price of kr4.85 in the past 12 months. Insiders invest with the hopes of seeing their money grow in value over time. However, as a result of recent losses, their initial investment is now only worth kr382k, which is not what they expected.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

If you're not interested in researching TCT's insider transactions, we have a free list of interesting investing ideas to potentially inspire your next investment!

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The Last 12 Months Of Insider Transactions At TC TECH Sweden

While no particular insider transaction stood out, we can still look at the overall trading.

In the last twelve months TC TECH Sweden insiders were buying shares, but not selling. Their average price was about kr4.85. I'd consider this a positive as it suggests insiders see value at around the current price, which is kr4.18. 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!

insider-trading-volume
OM:TCT Insider Trading Volume September 1st 2022

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Does TC TECH Sweden Boast High Insider Ownership?

Many investors like to check how much of a company is owned by 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. TC TECH Sweden insiders own about kr59m worth of shares (which is 55% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At TC TECH Sweden Tell Us?

It doesn't really mean much that no insider has traded TC TECH Sweden shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. Judging from their transactions, and high insider ownership, TC TECH Sweden insiders feel good about the company's future. 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. For example, TC TECH Sweden has 4 warning signs (and 2 which are significant) we think 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, but not derivative transactions.

Valuation is complex, but we're here to simplify it.

Discover if TC TECH Sweden might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.

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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.