Did Bactiguard Holding AB (publ) (STO:BACTI B) Insiders Buy Up More Shares?

We often see insiders buying up shares in companies that perform well over the long term. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So before you buy or sell Bactiguard Holding AB (publ) (STO:BACTI B), you may well want to know whether insiders have been buying or selling.

Do Insider Transactions Matter?

It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, rules govern insider transactions, and certain disclosures are required.

We don't think shareholders should simply follow insider transactions. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year'.

Check out our latest analysis for Bactiguard Holding

The Last 12 Months Of Insider Transactions At Bactiguard Holding

The Independent Deputy Chairman Jan Stahlberg made the biggest insider purchase in the last 12 months. That single transaction was for kr3.3m worth of shares at a price of kr85.00 each. We do like to see buying, but this purchase was made at well below the current price of kr139. 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.

While Bactiguard Holding insiders bought shares during the last year, they didn't sell. They paid about kr105 on average. We don't deny that it is nice to see insiders buying stock in the company. However, we do note that they were buying at significantly lower prices than today's share price. 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!

Bactiguard Holding is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Does Bactiguard Holding Boast High 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. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 12% of Bactiguard Holding shares, worth about kr559m. 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 Bactiguard Holding Insiders?

The fact that there have been no Bactiguard Holding insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. Judging from their transactions, and high insider ownership, Bactiguard Holding insiders feel good about the company's future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Bactiguard Holding. Case in point: We've spotted 1 warning sign for Bactiguard Holding you should be aware of.

Of course Bactiguard Holding may not be the best stock to buy. So you may wish to see this free collection of high quality 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.

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