Insider Buyers Lose kr2.0m As Bio-Works Technologies Sheds kr8.1m

Insiders who bought kr2.33m worth of Bio-Works Technologies AB (publ)'s (NGM:BIOWKS) stock at an average buy price of kr6.38 over the last year may be disappointed by the recent 17% decrease in the stock. Insiders purchase with the hope of seeing their investments increase in value over time. However, due to recent losses, their initial investment is now only worth kr361.4k, which is not great.

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.

View our latest analysis for Bio-Works Technologies

Bio-Works Technologies Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Independent Chairman of the Board Peter von Ehrenheim for kr908k worth of shares, at about kr7.50 per share. That means that even when the share price was higher than kr0.99 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

While Bio-Works Technologies insiders bought shares during the last year, they didn't sell. They paid about kr6.38 on average. This is nice to see since it implies that insiders might see value around current prices. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Bio-Works Technologies is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Does Bio-Works Technologies 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. Insiders own 24% of Bio-Works Technologies shares, worth about kr9.2m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Bio-Works Technologies Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Bio-Works Technologies shares in the last quarter. However, our analysis of transactions over the last year is heartening. Insiders do have a stake in Bio-Works Technologies and their transactions don't cause us concern. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To that end, you should learn about the 6 warning signs we've spotted with Bio-Works Technologies (including 4 which can't be ignored).

But note: Bio-Works Technologies 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.