Insiders probably made the right decision selling kr9.2m worth of shares earlier this year as Sedana Medical AB (publ)'s (STO:SEDANA)) stock dips by 7.6%.

By
Simply Wall St
Published
November 24, 2021
OM:SEDANA
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Over the past year, insiders sold kr9.2m worth of Sedana Medical AB (publ) (STO:SEDANA) stock at an average price of kr97.23 per share allowing them to get the most out of their money. The company’s market cap plunged by kr664m after price dropped by 7.6% last week but insiders were able to limit their loss to an extent.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for Sedana Medical

The Last 12 Months Of Insider Transactions At Sedana Medical

In the last twelve months, the biggest single sale by an insider was when the Chief Medical Officer, Peter Sackey, sold kr6.3m worth of shares at a price of kr97.12 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of kr88.15. So it may not shed much light on insider confidence at current levels.

Insiders in Sedana Medical didn't buy any shares in the last year. 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!

insider-trading-volume
OM:SEDANA Insider Trading Volume November 24th 2021

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Insiders at Sedana Medical Have Sold Stock Recently

Over the last three months, we've seen significant insider selling at Sedana Medical. In total, insiders dumped kr9.2m worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.

Insider Ownership of Sedana Medical

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Sedana Medical insiders own about kr1.3b worth of shares (which is 16% 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.

What Might The Insider Transactions At Sedana Medical Tell Us?

Insiders haven't bought Sedana Medical stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. 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. You'd be interested to know, that we found 1 warning sign for Sedana Medical and we suggest you have a look.

But note: Sedana 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.

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.

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