As InDex Pharmaceuticals Holding AB (publ)'s (STO:INDEX) market cap increased kr24m, insiders who bought last year may be reflecting on buying more
InDex Pharmaceuticals Holding AB (publ) (STO:INDEX) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 11% resulting in a kr24m addition to the company’s market value. Put another way, the original kr66k acquisition is now worth kr70k.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
See our latest analysis for InDex Pharmaceuticals Holding
The Last 12 Months Of Insider Transactions At InDex Pharmaceuticals Holding
There wasn't any very large single transaction over the last year, but we can still observe some trading.
You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership Of InDex Pharmaceuticals Holding
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data suggests InDex Pharmaceuticals Holding insiders own 2.4% of the company, worth about kr6.0m. But they may have an indirect interest through a corporate structure that we haven't picked up on. We consider this fairly low insider ownership.
What Might The Insider Transactions At InDex Pharmaceuticals Holding Tell Us?
It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that InDex Pharmaceuticals Holding insiders are expecting a bright 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 5 warning signs for InDex Pharmaceuticals Holding (2 are potentially serious) you should be aware of.
Of course InDex Pharmaceuticals Holding 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, but not derivative transactions.
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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.
InDex Pharmaceuticals Holding
InDex Pharmaceuticals Holding AB (publ), a pharmaceutical development company, develops pharmaceutical products for patients with ulcerative colitis.
Flawless balance sheet and slightly overvalued.