Biotage AB (publ) (STO:BIOT) drops to kr220, yet insiders may have sold too early fetching only kr177 apiece

By
Simply Wall St
Published
January 10, 2022
OM:BIOT
Source: Shutterstock

Biotage AB (publ)'s (STO:BIOT) value has fallen 16% in the last week, but insiders who sold kr266k worth of stock over the last year have had less success. Insiders might have been better off holding onto their shares, given that the average selling price of kr177 is still below the current share price.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for Biotage

Biotage Insider Transactions Over The Last Year

There wasn't any very large single transaction over the last year, but we can still observe some trading.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
OM:BIOT Insider Trading Volume January 10th 2022

I will like Biotage better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Insider Ownership of Biotage

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. From our data, it seems that Biotage insiders own 0.6% of the company, worth about kr87m. Whilst better than nothing, we're not overly impressed by these holdings.

So What Do The Biotage Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Biotage shares in the last quarter. We don't take much encouragement from the transactions by Biotage insiders. The modest level of insider ownership is, at least, some comfort. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. In terms of investment risks, we've identified 1 warning sign with Biotage and understanding this should be part of your investment process.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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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