Insider Stock Buying Reaches €7.98m On Medicover

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 Medicover AB (publ) (STO:MCOV B), it sends a favourable message to the company's shareholders.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for Medicover

The Last 12 Months Of Insider Transactions At Medicover

In the last twelve months, the biggest single purchase by an insider was when Independent Chairman Fredrik Stenmo bought kr3.9m worth of shares at a price of kr129 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of kr189. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

In the last twelve months insiders purchased 57.57k shares for kr8.0m. But they sold 6.00k shares for kr1.2m. In the last twelve months there was more buying than selling by Medicover insiders. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that Medicover insiders own 11% of the company, worth about kr3.1b. 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 Do The Medicover Insider Transactions Indicate?

There haven't been any insider transactions in the last three months -- that doesn't mean much. On a brighter note, the transactions over the last year are encouraging. Judging from their transactions, and high insider ownership, Medicover insiders feel good about the company's future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Medicover. Case in point: We've spotted 2 warning signs for Medicover you should be aware of, and 1 of them is a bit unpleasant.

Of course Medicover may not be the best stock to buy. So you may wish to see this free collection of high quality 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 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.