An Insider At Redcare Pharmacy Lowered Their Holding Recently

Viewing insider transactions for Redcare Pharmacy NV's (ETR:RDC ) over the last year, we see that insiders were net sellers. This means that a larger number of shares were sold by insiders in relation to shares purchased.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

We've discovered 2 warning signs about Redcare Pharmacy. View them for free.

The Last 12 Months Of Insider Transactions At Redcare Pharmacy

Over the last year, we can see that the biggest insider sale was by the COO & Member of the Managing Board, Theresa Holler, for €269k worth of shares, at about €134 per share. So we know that an insider sold shares at around the present share price of €125. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern. Theresa Holler was the only individual insider to sell shares in the last twelve months.

Over the last year, we can see that insiders have bought 6.77k shares worth €802k. But they sold 6.00k shares for €809k. Theresa Holler ditched 6.00k shares over the year. The average price per share was €135. 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!

Check out our latest analysis for Redcare Pharmacy

I will like Redcare Pharmacy better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Redcare Pharmacy Insiders Are Selling The Stock

Over the last three months, we've seen notably more insider selling, than insider buying, at Redcare Pharmacy. In total, COO & Member of the Managing Board Theresa Holler sold €269k worth of shares in that time. Meanwhile insider Frank Kohler bought €54k worth. Because the selling vastly outweighs the buying, we'd say this is a somewhat bearish sign.

Insider Ownership Of Redcare Pharmacy

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that Redcare Pharmacy insiders own 13% of the company, worth about €343m. 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 Redcare Pharmacy Insider Transactions Indicate?

The stark truth for Redcare Pharmacy is that there has been more insider selling than insider buying in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. It is good to see high insider ownership, but the insider selling leaves us cautious. 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. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of Redcare Pharmacy.

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 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.