Trade Alert: MD and CEO of Denmark Of Dedicare Kasper Madsen Has Sold Stock

Anyone interested in Dedicare AB (publ) (STO:DEDI) should probably be aware that the MD and CEO of Denmark, Kasper Madsen, recently divested kr2.4m worth of shares in the company, at an average price of kr49.02 each. The eyebrow raising move amounted to a reduction of 43% in their holding.

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The Last 12 Months Of Insider Transactions At Dedicare

Notably, that recent sale by Kasper Madsen is the biggest insider sale of Dedicare shares that we've seen in the last year. So we know that an insider sold shares at around the present share price of kr48.25. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

In the last twelve months insiders purchased 6.91k shares for kr414k. But they sold 49.14k shares for kr2.4m. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart 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 Dedicare

I will like Dedicare 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.

Does Dedicare Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Dedicare insiders own about kr195m worth of shares (which is 42% 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 Dedicare Insiders?

An insider sold Dedicare shares recently, but they didn't buy any. And our longer term analysis of insider transactions didn't bring confidence, either. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. 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. At Simply Wall St, we found 4 warning signs for Dedicare that deserve your attention before buying any shares.

But note: Dedicare 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.