Insiders See €10.9m Investment In QuickBit eu Jump Last Week

QuickBit eu AB (publ) (NGM:QBIT) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 14% resulting in a kr63m addition to the company’s market value. As a result, the stock they originally bought for €10.9m is now worth €32.2m.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for QuickBit eu

QuickBit eu Insider Transactions Over The Last Year

The Independent Director Scott Wilson made the biggest insider purchase in the last 12 months. That single transaction was for kr11m worth of shares at a price of kr1.27 each. We do like to see buying, but this purchase was made at well below the current price of kr3.76. 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 insiders purchased 8.56m shares for kr11m. But they sold 8.34m shares for kr11m. Overall, QuickBit eu insiders were net buyers during the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

QuickBit eu 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.

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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. From looking at our data, insiders own kr24m worth of QuickBit eu stock, about 4.6% of the company. 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.

What Might The Insider Transactions At QuickBit eu Tell Us?

It doesn't really mean much that no insider has traded QuickBit eu shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Insiders do have a stake in QuickBit eu and their transactions don't cause us concern. 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. When we did our research, we found 5 warning signs for QuickBit eu (4 make us uncomfortable!) that we believe deserve your full attention.

Of course QuickBit eu 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 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com