Despite Recent Gains, SOZAP Insiders Are Still Down kr680k

Some of the losses seen by insiders who purchased kr2.2m worth of SOZAP AB (publ) (STO:SOZAP) shares over the past year were recovered after the stock increased by 14% over the past week. However, the purchase is proving to be an expensive wager as insiders are yet to get ahead of their losses which currently stand at kr680k since the time of purchase.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for SOZAP

The Last 12 Months Of Insider Transactions At SOZAP

The Independent Chairman of the Board Claes Wenthzel made the biggest insider purchase in the last 12 months. That single transaction was for kr595k worth of shares at a price of kr10.00 each. That means that even when the share price was higher than kr6.06 (the recent price), an insider wanted to purchase shares. 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. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Notably Claes Wenthzel was also the biggest seller.

Over the last year, we can see that insiders have bought 250.86k shares worth kr2.2m. But insiders sold 53.50k shares worth kr480k. In the last twelve months there was more buying than selling by SOZAP insiders. Their average price was about kr8.77. These transactions suggest that insiders have considered the current price attractive. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

SOZAP 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.

Insiders At SOZAP Have Bought Stock Recently

There was some insider buying at SOZAP over the last quarter. Independent Chairman of the Board Claes Wenthzel bought kr380k worth in that time. But Independent Chairman of the Board Claes Wenthzel sold kr145k worth. It is good to see that insiders have been buying, but they did not buy very many shares, in the scheme of things.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company 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 40% of SOZAP shares, worth about kr27m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At SOZAP Tell Us?

The recent insider purchase is heartening. 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. Given that insiders also own a fair bit of SOZAP we think they are probably pretty confident of a bright future. 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. Our analysis shows 6 warning signs for SOZAP (4 can't be ignored!) and we strongly recommend you look at them before investing.

Of course SOZAP 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. 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.