Despite Recent Gains, New Nordic Healthbrands Insiders Are Still Down kr377k

Insiders who bought kr1.54m worth of New Nordic Healthbrands AB (publ) (STO:NNH) stock in the last year have seen some of their losses recouped as the stock gained 14% last week. However, total losses seen by insiders are still kr377k since the time of purchase.

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 New Nordic Healthbrands

The Last 12 Months Of Insider Transactions At New Nordic Healthbrands

Over the last year, we can see that the biggest insider purchase was by insider Tage Finninge for kr1.4m worth of shares, at about kr28.00 per share. That means that an insider was happy to buy shares at above the current price of kr21.10. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Tage Finninge was the only individual insider to buy during the last year.

Tage Finninge purchased 55.12k shares over the year. The average price per share was kr27.95. 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!

New Nordic Healthbrands is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership Of New Nordic Healthbrands

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. New Nordic Healthbrands insiders own about kr57m worth of shares (which is 43% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About New Nordic Healthbrands Insiders?

It doesn't really mean much that no insider has traded New Nordic Healthbrands shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Judging from their transactions, and high insider ownership, New Nordic Healthbrands insiders feel good about the company's future. 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. For instance, we've identified 2 warning signs for New Nordic Healthbrands (1 is a bit unpleasant) you should be aware of.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.