Stock Analysis
Moberg Pharma Insider Purchases Yet To Pay Off Regardless Of Recent Strength
Some of the losses seen by insiders who purchased kr674.1k worth of Moberg Pharma AB (publ) (STO:MOB) shares over the past year were recovered after the stock increased by 12% over the past week. However, the purchase is proving to be an expensive wager as insiders are yet to get ahead of their losses which currently stand at kr345k since the time of purchase.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for Moberg Pharma
Moberg Pharma Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when insider Annica Magnusson bought kr674k worth of shares at a price of kr29.21 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being kr14.25). 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. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Annica Magnusson was the only individual insider to buy shares in the last twelve months. Notably Annica Magnusson was also the biggest seller.
The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.
Insider Ownership Of Moberg Pharma
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Our data indicates that Moberg Pharma insiders own about kr44m worth of shares (which is 6.6% of the company). Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!
So What Does This Data Suggest About Moberg Pharma Insiders?
The fact that there have been no Moberg Pharma insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. Insiders own shares in Moberg Pharma and we see no evidence to suggest they are worried about the future. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Be aware that Moberg Pharma is showing 4 warning signs in our investment analysis, and 3 of those make us uncomfortable...
But note: Moberg Pharma 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.
About OM:MOB
Moberg Pharma
A pharmaceutical company, develops and commercializes medical products primarily in Sweden.