Even if it's not a huge purchase, we think it was good to see that Tobias Hägglöv, the Chief Financial Officer of Recipharm AB (publ) (STO:RECI B) recently shelled out kr159k to buy stock, at kr106 per share. That purchase might not be huge but it did increase their holding by 45%.
Recipharm Insider Transactions Over The Last Year
Notably, that recent purchase by Tobias Hägglöv is the biggest insider purchase of Recipharm shares that we've seen in the last year. That implies that an insider found the current price of kr116 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. In this case we're pleased to report that the insider purchases were made at close to current prices.
While Recipharm insiders bought shares during the last year, they didn't sell. They paid about kr124 on average. I'd consider this a positive as it suggests insiders see value at around the current price, which is kr116. You can see the insider transactions (by individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
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 Recipharm
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Recipharm insiders own about kr2.2b worth of shares (which is 28% 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 Does This Data Suggest About Recipharm Insiders?
The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest Recipharm insiders are well aligned, and quite possibly think the share price is too low. One for the watchlist, at least! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. When we did our research, we found 4 warning signs for Recipharm (1 is a bit concerning!) that we believe deserve your full attention.
Of course Recipharm 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. 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. Thank you for reading.