Moberg Pharma Reaches kr1.7b Market Cap Benefiting Insider Stock Buying

Last week, Moberg Pharma AB (publ) (STO:MOB) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 30% last week, resulting in a kr395m increase in the company's market worth, implying a 28% gain on their initial purchase. As a result, the stock they originally bought for kr674.1k is now worth kr863.5k.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for Moberg Pharma

The Last 12 Months Of Insider Transactions At Moberg Pharma

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. Even though the purchase was made at a significantly lower price than the recent price (kr37.42), we still think insider buying is a positive. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

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 always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Moberg Pharma Insiders Bought Stock Recently

Over the last three months, we've seen a bit of insider buying at Moberg Pharma. insider Annica Magnusson bought kr674k worth in that time. On the other hand, insider Annica Magnusson sold kr383k worth of shares. It is nice to see that insiders have bought, but the quantum isn't large enough to get us excited.

Insider Ownership

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. It appears that Moberg Pharma insiders own 6.6% of the company, worth about kr112m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Moberg Pharma Insider Transactions Indicate?

It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest Moberg Pharma insiders are well aligned, and quite possibly think the share price is too low. Nice! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Moberg Pharma. Every company has risks, and we've spotted 3 warning signs for Moberg Pharma you should know about.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com