Stock Analysis

Insiders who bought stock earlier this year lose -kr495k as Q-linea AB (publ) (STO:QLINEA) drops to kr229m

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Insiders who bought kr1.2m worth of Q-linea AB (publ)'s (STO:QLINEA) stock at an average buy price of kr13.69 over the last year may be disappointed by the recent 20% decrease in the stock. This is not good as insiders invest based on expectations that their money will appreciate over time. However, as a result of recent losses, their original investment is now worth only kr662k.

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.

View our latest analysis for Q-linea

Q-linea Insider Transactions Over The Last Year

While there weren't any large insider transactions in the last twelve months, it's still worth looking at the trading.

Q-linea insiders may have bought shares in the last year, but they didn't sell any. Their average price was about kr13.69. I'd consider this a positive as it suggests insiders see value at around the current price, which is kr7.83. 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!

OM:QLINEA Insider Trading Volume March 17th 2023

Q-linea is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Q-linea Insiders Bought Stock Recently

Over the last quarter, Q-linea insiders have spent a meaningful amount on shares. Overall, two insiders shelled out kr615k for shares in the company -- and none sold. This makes one think the business has some good points.

Insider Ownership Of Q-linea

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Our data suggests Q-linea insiders own 4.6% of the company, worth about kr10m. We prefer to see high levels of insider ownership.

What Might The Insider Transactions At Q-linea Tell Us?

It is good to see recent purchasing. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest Q-linea insiders are well aligned, and that they may think the share price is too low. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Case in point: We've spotted 6 warning signs for Q-linea you should be aware of, and 3 of them are a bit concerning.

But note: Q-linea 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, but not derivative transactions.

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