Bullish ChemoMetec Insiders Loaded Up On kr.4.76m Of Stock

Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of ChemoMetec A/S (CPH:CHEMM), it sends a favourable message to the company's shareholders.

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

View our latest analysis for ChemoMetec

The Last 12 Months Of Insider Transactions At ChemoMetec

The Deputy Chairman Hans Glensbjerg made the biggest insider purchase in the last 12 months. That single transaction was for kr.3.2m worth of shares at a price of kr.456 each. We do like to see buying, but this purchase was made at well below the current price of kr.584. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

While ChemoMetec insiders bought shares during the last year, they didn't sell. They paid about kr.405 on average. We don't deny that it is nice to see insiders buying stock in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Insider Ownership Of ChemoMetec

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. Our data indicates that ChemoMetec insiders own about kr.37m worth of shares (which is 0.4% of the company). Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

So What Do The ChemoMetec Insider Transactions Indicate?

The fact that there have been no ChemoMetec insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. Insiders do have a stake in ChemoMetec and their transactions don't cause us concern. Therefore, you should definitely take a look at this FREE report showing analyst forecasts for ChemoMetec.

But note: ChemoMetec 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.