Insider Buying: The Enzymatica AB (STO:ENZY) Director Just Bought kr102k Worth Of Shares

Whilst it may not be a huge deal, we thought it was good to see that the Enzymatica AB (STO:ENZY) Director, Mats Andersson, recently bought kr102k worth of stock, for kr15.00 per share. Nevertheless, it only increased their shareholding by a minuscule percentage, and it wasn't a massive purchase by absolute value, either.

See our latest analysis for Enzymatica

The Last 12 Months Of Insider Transactions At Enzymatica

In fact, the recent purchase by Director Mats Andersson was not their only acquisition of Enzymatica shares this year. They previously made an even bigger purchase of kr863k worth of shares at a price of kr5.75 per share. We do like to see buying, but this purchase was made at well below the current price of kr15.10. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

In the last twelve months Enzymatica insiders were buying shares, but not selling. They paid about kr8.05 on average. It is certainly positive to see that insiders have invested their own money in the company. But we must note that the investments were made at well below today's share price. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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

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 Enzymatica insiders own 31% of the company, worth about kr684m. 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 Does This Data Suggest About Enzymatica Insiders?

The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest Enzymatica insiders are well aligned, and quite possibly think the share price is too low. Looks promising! 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. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Enzymatica.

But note: Enzymatica 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.

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