Have MedCap Insiders Been Selling Stock?

Anyone interested in MedCap AB (publ) (STO:MCAP) should probably be aware that the Chairman, Karl Tobieson, recently divested kr3.4m worth of shares in the company, at an average price of kr537 each. On the bright side, that sale was only 4.6% of their holding, so we doubt it's very meaningful, on its own.

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MedCap Insider Transactions Over The Last Year

In fact, the recent sale by Chairman Karl Tobieson was not their only sale of MedCap shares this year. They previously made an even bigger sale of -kr22m worth of shares at a price of kr444 per share. That means that even when the share price was below the current price of kr534, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. This single sale was just 28% of Karl Tobieson's stake.

Over the last year, we can see that insiders have bought 11.00k shares worth kr4.3m. But they sold 56.37k shares for kr26m. Karl Tobieson sold a total of 56.37k shares over the year at an average price of kr455. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

View our latest analysis for MedCap

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Insider Ownership Of MedCap

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. MedCap insiders own about kr96m worth of shares. That equates to 1.2% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At MedCap Tell Us?

An insider sold MedCap shares recently, but they didn't buy any. Zooming out, the longer term picture doesn't give us much comfort. Insiders own shares, but we're still pretty cautious, given the history of sales. We're in no rush to buy! 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 example - MedCap has 1 warning sign we think you should be aware of.

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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.