Stock Analysis

The Chief Commercial Officer & COO of New Nordic Healthbrands AB (publ) (STO:NNH), Tage Finninge, Just Bought 8.2% More Shares

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Even if it's not a huge purchase, we think it was good to see that Tage Finninge, the Chief Commercial Officer & COO of New Nordic Healthbrands AB (publ) (STO:NNH) recently shelled out kr140k to buy stock, at kr27.42 per share. Although the purchase is not a big one, increasing their shareholding by only 8.2%, it can be interpreted as a good sign.

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The Last 12 Months Of Insider Transactions At New Nordic Healthbrands

While no particular insider transaction stood out, we can still look at the overall trading.

In the last twelve months insiders purchased 28.19k shares for kr815k. On the other hand they divested 6.50k shares, for kr316k. In total, New Nordic Healthbrands insiders bought more than they sold over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

OM:NNH Insider Trading Volume March 16th 2023

New Nordic Healthbrands is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership Of New Nordic Healthbrands

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. New Nordic Healthbrands insiders own about kr81m worth of shares (which is 44% 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 Do The New Nordic Healthbrands Insider Transactions Indicate?

It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest New Nordic Healthbrands insiders are well aligned, and quite possibly think the share price is too low. Nice! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 2 warning signs for New Nordic Healthbrands you should be aware of, and 1 of them is a bit unpleasant.

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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