Insider Buys Additional kr1.9m In SynAct Pharma Stock

Potential SynAct Pharma AB (STO:SYNACT) shareholders may wish to note that the Chief Operating Officer, Thomas Boesen, recently bought kr1.9m worth of stock, paying kr101 for each share. However, it only increased shareholding by a small percentage, and it wasn't a huge purchase by absolute value, either.

View our latest analysis for SynAct Pharma

SynAct Pharma Insider Transactions Over The Last Year

Notably, that recent purchase by Thomas Boesen is the biggest insider purchase of SynAct Pharma shares that we've seen in the last year. That means that even when the share price was higher than kr7.12 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Notably Thomas Boesen was also the biggest seller.

In the last twelve months insiders purchased 92.04k shares for kr2.6m. On the other hand they divested 21.00k shares, for kr145k. Overall, SynAct Pharma insiders were net buyers during the last year. The average buy price was around kr27.72. These transactions suggest that insiders have considered the current price attractive. 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!

SynAct Pharma 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. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 17% of SynAct Pharma shares, worth about kr49m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About SynAct Pharma Insiders?

The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest SynAct Pharma insiders are well aligned, and that they may think the share price is too low. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing SynAct Pharma. For example, SynAct Pharma has 5 warning signs (and 2 which are significant) we think you should know about.

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.