Have Medicover Insiders Been Selling Stock?
Anyone interested in Medicover AB (publ) (STO:MCOV B) should probably be aware that the General Legal Counsel, Jenny Brandt, recently divested kr2.7m worth of shares in the company, at an average price of kr242 each. That sale was 12% of their holding, so it does make us raise an eyebrow.
Medicover Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Independent Chairman Fredrik Stenmo for kr6.4m worth of shares, at about kr215 per share. That means that an insider was happy to buy shares at around the current price of kr231. 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. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. Happily, the Medicover insiders decided to buy shares at close to current prices.
Happily, we note that in the last year insiders paid kr9.7m for 44.69k shares. On the other hand they divested 11.00k shares, for kr2.7m. Overall, Medicover insiders were net buyers during the last year. 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!
View our latest analysis for Medicover
Medicover is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Insider Ownership
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Medicover insiders own about kr4.0b worth of shares (which is 12% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Does This Data Suggest About Medicover Insiders?
An insider sold stock recently, but they haven't been buying. But we take heart from prior transactions. We are also comforted by the high levels of insider ownership. So we're happy to look past recent trading. 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, Medicover has 2 warning signs (and 1 which is a bit concerning) we think you should know about.
But note: Medicover may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.