Trade Alert: The Independent Chairman Of Botnia Exploration Holding AB (publ) (STO:BOTX), Lars Engstrom, Has Just Spent kr106k Buying 14% More Shares

By
Simply Wall St
Published
May 26, 2021
OM:BOTX

Even if it's not a huge purchase, we think it was good to see that Lars Engstrom, the Independent Chairman of Botnia Exploration Holding AB (publ) (STO:BOTX) recently shelled out kr106k to buy stock, at kr13.64 per share. While we're hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 14%.

View our latest analysis for Botnia Exploration Holding

The Last 12 Months Of Insider Transactions At Botnia Exploration Holding

Notably, that recent purchase by Lars Engstrom is the biggest insider purchase of Botnia Exploration Holding shares that we've seen in the last year. So it's clear an insider wanted to buy, even at a higher price than the current share price (being kr12.85). Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Lars Engstrom was the only individual insider to buy shares in the last twelve months.

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!

insider-trading-volume
OM:BOTX Insider Trading Volume May 27th 2021

Botnia Exploration Holding is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership of Botnia Exploration Holding

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Insiders own 13% of Botnia Exploration Holding shares, worth about kr47m, according to our data. But they may have an indirect interest through a corporate structure that we haven't picked up on. Whilst better than nothing, we're not overly impressed by these holdings.

What Might The Insider Transactions At Botnia Exploration Holding Tell Us?

The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Given that insiders also own a fair bit of Botnia Exploration Holding we think they are probably pretty confident of a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Botnia Exploration Holding. Every company has risks, and we've spotted 5 warning signs for Botnia Exploration Holding (of which 2 are concerning!) you should know about.

Of course Botnia Exploration 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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This article by Simply Wall St is general in nature. 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.
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