As LC-Tec Holding AB (NGM:LCT) hits kr92m market cap, insiders may be dismayed about not purchasing higher quantities

By
Simply Wall St
Published
January 17, 2022
NGM:LCT
Source: Shutterstock

Last week, LC-Tec Holding AB (NGM:LCT) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 43% last week, resulting in a kr28m increase in the company's market worth. In other words, the original kr86k purchase is now worth kr268k.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for LC-Tec Holding

The Last 12 Months Of Insider Transactions At LC-Tec Holding

While no particular insider transaction stood out, we can still look at the overall trading.

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!

insider-trading-volume
NGM:LCT Insider Trading Volume January 17th 2022

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

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. It appears that LC-Tec Holding insiders own 29% of the company, worth about kr26m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At LC-Tec Holding Tell Us?

The fact that there have been no LC-Tec Holding insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. Overall we don't see anything to make us think LC-Tec Holding insiders are doubting the company, and they do own shares. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. When we did our research, we found 5 warning signs for LC-Tec Holding (2 shouldn't be ignored!) that we believe deserve your full attention.

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, but not derivative transactions.

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