CEO & President Isabelle Valerie Ducellier Just Bought 8.2% More Shares In BioGaia AB (publ) (STO:BIOG B)

Whilst it may not be a huge deal, we thought it was good to see that the BioGaia AB (publ) (STO:BIOG B) CEO & President, Isabelle Valerie Ducellier, recently bought kr99k worth of stock, for kr450 per share. However, it only increased their shares held by 8.2%, and it wasn't a huge purchase by absolute value, either.

Check out our latest analysis for BioGaia

BioGaia Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Independent Deputy Board Chairman, David E. Dangoor, sold kr10m worth of shares at a price of kr507 per share. That means that an insider was selling shares at around the current price of kr448. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive). The only individual insider seller over the last year was David E. Dangoor.

In the last twelve months insiders purchased 1.89k shares for kr715k. But insiders sold 26.02k shares worth kr13m. David E. Dangoor divested 26.02k shares over the last 12 months at an average price of kr486. 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!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Insider Ownership of BioGaia

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 3.0% of BioGaia shares, worth about kr275m. 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 BioGaia Insider Transactions Indicate?

The recent insider purchase is heartening. But we can't say the same for the transactions over the last 12 months. Overall, we'd prefer see a more sustained buying from directors, but with a significant insider holding and more recent purchases, BioGaia insiders are reasonably well aligned, and optimistic for the future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 1 warning sign with BioGaia and understanding this should be part of your investment process.

But note: BioGaia 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.

When trading BioGaia or any other investment, use the platform considered by many to be the Professional's Gateway to the Worlds Market, Interactive Brokers. You get the lowest-cost* trading on stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted

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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

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