Lifecare AS (OB:LIFE) insiders must be happy they sold stock as market cap drops to kr144m

By
Simply Wall St
Published
August 16, 2021
OB:LIFE
Source: Shutterstock

Over the past year, insiders sold kr270k worth of Lifecare AS (OB:LIFE) stock at an average price of kr5.40 per share allowing them to get the most out of their money. The company's market valuation decreased by kr24m after the stock price dropped 14% over the past week, but insiders were spared from painful losses.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Lifecare

Lifecare Insider Transactions Over The Last Year

While there weren't any large insider transactions in the last twelve months, it's still worth looking at the trading.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume
OB:LIFE Insider Trading Volume August 17th 2021

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Based on our data, Lifecare insiders have about 1.1% of the stock, worth approximately kr1.5m. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. I generally like to see higher levels of ownership.

So What Do The Lifecare Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Lifecare shares in the last quarter. Our analysis of Lifecare insider transactions leaves us unenthusiastic. And we're not picking up on high enough insider ownership to give us any comfort. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Lifecare. For instance, we've identified 4 warning signs for Lifecare (2 are a bit concerning) you should be aware of.

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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