Xspray Pharma's Recent Gains Improve Losses On Insider Purchases Worth kr6.5m

Insiders who bought kr6.5m worth of Xspray Pharma AB (publ) (STO:XSPRAY) stock in the last year recovered part of their losses as the stock rose by 30% last week. However, the purchase is proving to be a costly gamble, since losses made by insiders have totalled kr1.9m since the time of purchase.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Xspray Pharma

Xspray Pharma Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Director Anders Bladh for kr2.6m worth of shares, at about kr52.50 per share. That means that even when the share price was higher than kr44.00 (the recent price), an insider wanted to purchase shares. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

Over the last year, we can see that insiders have bought 105.09k shares worth kr6.5m. But they sold 30.00k shares for kr2.2m. In total, Xspray Pharma insiders bought more than they sold over the last year. They paid about kr62.09 on average. These transactions suggest that insiders have considered the current price attractive. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Does Xspray Pharma Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Based on our data, Xspray Pharma insiders have about 2.0% of the stock, worth approximately kr19m. But they may have an indirect interest through a corporate structure that we haven't picked up on. We prefer to see high levels of insider ownership.

What Might The Insider Transactions At Xspray Pharma Tell Us?

The fact that there have been no Xspray Pharma insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. Insiders own shares in Xspray Pharma and we see no evidence to suggest they are worried about the future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example, Xspray Pharma has 5 warning signs (and 2 which are significant) we think you should know about.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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 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.