Tobii Up 10%, Insiders Still Down After kr7.02m Purchase

Some of the losses seen by insiders who purchased kr7.02m worth of Tobii AB (publ) (STO:TOBII) shares over the past year were recovered after the stock increased by 10% over the past week. However, total losses seen by insiders are still kr2.3m since the time of purchase.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for Tobii

Tobii Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Co-Founder Henrik Eskilsson for kr3.2m worth of shares, at about kr5.62 per share. That means that an insider was happy to buy shares at above the current price of kr3.42. Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. 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 1.39m shares worth kr7.0m. But they sold 27.25k shares for kr120k. In the last twelve months there was more buying than selling by Tobii insiders. Their average price was about kr5.05. This is nice to see since it implies that insiders might see value around current prices. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

Tobii is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Tobii Insiders Bought Stock Recently

Over the last three months, we've seen significant insider buying at Tobii. We can see that Co-Founder Henrik Eskilsson paid kr779k for shares in the company. No-one sold. This makes one think the business has some good points.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Insiders own 19% of Tobii shares, worth about kr152m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Tobii Tell Us?

The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Tobii. Looks promising! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Tobii. For instance, we've identified 4 warning signs for Tobii (2 are a bit unpleasant) you should be aware of.

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.