Egetis Therapeutics' Market Cap Up kr366m Following Year Of Insider Stock Buying

Egetis Therapeutics AB (publ) (STO:EGTX) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 26%, resulting in a kr366m rise in the company's market capitalisation, translating to a gain of 28% on their initial investment. Put another way, the original kr1.50m acquisition is now worth kr1.91m.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for Egetis Therapeutics

Egetis Therapeutics Insider Transactions Over The Last Year

The Director Mats Blom made the biggest insider purchase in the last 12 months. That single transaction was for kr992k worth of shares at a price of kr4.96 each. Even though the purchase was made at a significantly lower price than the recent price (kr6.14), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

While Egetis Therapeutics insiders bought shares during the last year, they didn't sell. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

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

Does Egetis Therapeutics Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Egetis Therapeutics insiders own 10% of the company, worth about kr186m. 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 Egetis Therapeutics Insider Transactions Indicate?

There haven't been any insider transactions in the last three months -- that doesn't mean much. However, our analysis of transactions over the last year is heartening. It would be great to see more insider buying, but overall it seems like Egetis Therapeutics insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Egetis Therapeutics. At Simply Wall St, we've found that Egetis Therapeutics has 4 warning signs (1 can't be ignored!) that deserve your attention before going any further with your analysis.

Of course Egetis Therapeutics 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 of direct interests only, but not derivative transactions or indirect interests.

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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.