As QBNK Holding AB (publ) (NGM:QBNK) hits kr102m market cap, insiders may be dismayed about not purchasing higher quantities

Simply Wall St
November 24, 2021
Source: Shutterstock

Insiders who bought QBNK Holding AB (publ) (NGM:QBNK) stock in the last 12 months were richly rewarded last week. The company's market value increased by kr11m as a result of the stock's 12% gain over the same period. As a result, the stock they originally bought for kr2.1m is now worth kr2.3m.

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.

Check out our latest analysis for QBNK Holding

The Last 12 Months Of Insider Transactions At QBNK Holding

Over the last year, we can see that the biggest insider purchase was by Director Fredrik Grevelius for kr500k worth of shares, at about kr12.63 per share. That implies that an insider found the current price of kr14.00 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. Happily, the QBNK Holding insider decided to buy shares at close to current prices. The only individual insider to buy over the last year was Fredrik Grevelius. Notably Fredrik Grevelius was also the biggest seller.

Fredrik Grevelius bought a total of 164.33k shares over the year at an average price of kr12.67. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

NGM:QBNK Insider Trading Volume November 25th 2021

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.

Insider Ownership of QBNK Holding

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. QBNK Holding insiders own about kr42m worth of shares (which is 41% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The QBNK Holding Insider Transactions Indicate?

There haven't been any insider transactions in the last three months -- that doesn't mean much. But insiders have shown more of an appetite for the stock, over the last year. It would be great to see more insider buying, but overall it seems like QBNK Holding insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. 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. You'd be interested to know, that we found 2 warning signs for QBNK Holding and we suggest you have a look.

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, but not derivative transactions.

Discounted cash flow calculation for every stock

Simply Wall St does a detailed discounted cash flow calculation every 6 hours for every stock on the market, so if you want to find the intrinsic value of any company just search here. It’s FREE.

Make Confident Investment Decisions

Simply Wall St's Editorial Team provides unbiased, factual reporting on global stocks using in-depth fundamental analysis.
Find out more about our editorial guidelines and team.