The President & CEO of Elos Medtech AB (publ) (STO:ELOS B), Jan Wahlström, Just Bought 28% More Shares

Whilst it may not be a huge deal, we thought it was good to see that the Elos Medtech AB (publ) (STO:ELOS B) President & CEO, Jan Wahlström, recently bought kr233k worth of stock, for kr116 per share. While we're hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 28%.

See our latest analysis for Elos Medtech

Elos Medtech Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Chief Executive Officer of Elos Medtech Microplast AB, Mathias Andersson, for kr1.3m worth of shares, at about kr66.76 per share. That means that an insider was selling shares at slightly below the current price (kr113). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. We note that the biggest single sale was 97% of Mathias Andersson's holding. The only individual insider seller over the last year was Mathias Andersson.

Over the last year, we can see that insiders have bought 9.50k shares worth kr857k. But insiders sold 19.00k shares worth kr1.3m. 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!

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Does Elos Medtech Boast High 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. I reckon it's a good sign if insiders own a significant number of shares in the company. Elos Medtech insiders own about kr207m worth of shares. That equates to 23% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About Elos Medtech Insiders?

It is good to see recent purchasing. On the other hand the transaction history, over the last year, isn't so positive. The high levels of insider ownership, and the recent buying by some insiders suggests they are well aligned and optimistic. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To help with this, we've discovered 3 warning signs (1 doesn't sit too well with us!) that you ought to be aware of before buying any shares in Elos Medtech.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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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