Stock Analysis

Director Anders Bladh Just Bought 55% More Shares In Xspray Pharma AB (publ) (STO:XSPRAY)

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Potential Xspray Pharma AB (publ) (STO:XSPRAY) shareholders may wish to note that the Director, Anders Bladh, recently bought kr2.2m worth of stock, paying kr72.00 for each share. That certainly has us anticipating the best, especially since they thusly increased their own holding by 55%, potentially signalling some real optimism.

See our latest analysis for Xspray Pharma

The Last 12 Months Of Insider Transactions At Xspray Pharma

Notably, that recent purchase by Director Anders Bladh was not the only time they bought Xspray Pharma shares this year. Earlier in the year, they paid kr52.50 per share in a kr2.6m purchase. Even though the purchase was made at a significantly lower price than the recent price (kr70.00), 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.

Happily, we note that in the last year insiders paid kr6.6m for 106.69k shares. But insiders sold 30.00k shares worth kr2.2m. Overall, Xspray Pharma insiders were net buyers during the last year. Their average price was about kr62.10. We don't deny that it is nice to see insiders buying stock in the company. However, we do note that they were buying at significantly lower prices than today's share price. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

OM:XSPRAY Insider Trading Volume March 19th 2023

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

Does Xspray Pharma Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. Based on our data, Xspray Pharma insiders have about 1.9% of the stock, worth approximately kr30m. But they may have an indirect interest through a corporate structure that we haven't picked up on. I generally like to see higher levels of ownership.

So What Does This Data Suggest About Xspray Pharma Insiders?

It is good to see recent purchasing. 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. Insiders likely see value in Xspray Pharma shares, given these transactions (along with notable insider ownership of the company). While we like knowing 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. Every company has risks, and we've spotted 3 warning signs for Xspray Pharma (of which 2 shouldn't be ignored!) you should know about.

Of course Xspray Pharma 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, but not derivative transactions.

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