Sedana Medical Insider Buyers Net kr1.0m Despite 10% Stock Decline

Insiders who bought Sedana Medical AB (publ) (STO:SEDANA) stock lover the last 12 months are probably not as affected by last week’s 10% loss. After accounting for the recent loss, the kr3.63m worth of shares they purchased is now worth kr4.67m, suggesting a good return on their investment.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

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The Last 12 Months Of Insider Transactions At Sedana Medical

Over the last year, we can see that the biggest insider purchase was by Independent Chairman of the Board Claus Bjerre for kr1.5m worth of shares, at about kr11.80 per share. We do like to see buying, but this purchase was made at well below the current price of kr15.70. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

In the last twelve months insiders purchased 297.50k shares for kr3.6m. But they sold 10.00k shares for kr112k. Overall, Sedana Medical insiders were net buyers during the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

See our latest analysis for Sedana Medical

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Does Sedana Medical Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. 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 appears that Sedana Medical insiders own 11% of the company, worth about kr172m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Sedana Medical Insiders?

It doesn't really mean much that no insider has traded Sedana Medical shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. Judging from their transactions, and high insider ownership, Sedana Medical insiders feel good about the company's future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For instance, we've identified 2 warning signs for Sedana Medical (1 is a bit unpleasant) you should be aware of.

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 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.