With Elicera Therapeutics Up 23%, Insider Buyers Count Their Returns

Elicera Therapeutics AB (publ) (STO:ELIC) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 23% resulting in a kr15m addition to the company’s market value. As a result, their original purchase of kr3.49m worth of stock is now worth kr6.35m.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for Elicera Therapeutics

Elicera Therapeutics Insider Transactions Over The Last Year

The CEO & Co-Founder Jamal El-Mosleh made the biggest insider purchase in the last 12 months. That single transaction was for kr3.4m worth of shares at a price of kr1.28 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of kr2.32. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

Jamal El-Mosleh bought 2.74m shares over the last 12 months at an average price of kr1.27. 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!

Elicera Therapeutics is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Does Elicera Therapeutics Boast High 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. Elicera Therapeutics insiders own about kr23m worth of shares. That equates to 29% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Elicera Therapeutics Insiders?

There haven't been any insider transactions in the last three months -- that doesn't mean much. But insiders have shown more of an appetite for the stock, over the last year. Overall we don't see anything to make us think Elicera Therapeutics insiders are doubting the company, and they do own shares. While it's good to be aware of 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. Case in point: We've spotted 6 warning signs for Elicera Therapeutics you should be aware of, and 5 of them are a bit unpleasant.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.