Have Insiders Been Buying Micropos Medical AB (publ) (NGM:MPOS) Shares?

It is not uncommon to see companies perform well in the years after insiders buy shares. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So shareholders might well want to know whether insiders have been buying or selling shares in Micropos Medical AB (publ) (NGM:MPOS).

What Is Insider Buying?

It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, most countries require that the company discloses such transactions to the market.

We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year'.

View our latest analysis for Micropos Medical

Micropos Medical Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Chairman Ove Mattsson for kr8.9m worth of shares, at about kr2.23 per share. We do like to see buying, but this purchase was made at well below the current price of kr3.00. 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.

Ove Mattsson bought 4.08m shares over the last 12 months at an average price of kr2.21. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Micropos Medical is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership of Micropos Medical

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. We usually like to see fairly high levels of insider ownership. It appears that Micropos Medical insiders own 23% of the company, worth about kr79m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Micropos Medical Tell Us?

There haven't been any insider transactions in the last three months -- that doesn't mean much. However, our analysis of transactions over the last year is heartening. Insiders do have a stake in Micropos Medical and their transactions don't cause us concern. 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. Case in point: We've spotted 4 warning signs for Micropos Medical you should be aware of, and 2 of these are potentially serious.

But note: Micropos Medical 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, but not derivative transactions.

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