Even if it's not a huge purchase, we think it was good to see that Helena Levander, the Chairman of Medivir AB (publ) (STO:MVIR B) recently shelled out kr264k to buy stock, at kr11.22 per share. While that isn't the hugest buy, it actually boosted their shareholding by 78%, which is good to see.
The Last 12 Months Of Insider Transactions At Medivir
In fact, the recent purchase by Chairman Helena Levander was not their only acquisition of Medivir shares this year. They previously made an even bigger purchase of kr333k worth of shares at a price of kr16.76 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being kr11.80). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. To us, it's very important to consider the price insiders pay for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
In the last twelve months Medivir insiders were buying shares, but not selling. The average buy price was around kr14.22. I'd consider this a positive as it suggests insiders see value at around the current price, which is kr11.80. You can see a visual depiction of insider transactions (by 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!
Medivir is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership of Medivir
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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Based on our data, Medivir insiders have about 4.7% of the stock, worth approximately kr13m. We consider this fairly low insider ownership.
So What Does This Data Suggest About Medivir Insiders?
It's certainly positive 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. When combined with notable insider ownership, these factors suggest Medivir insiders are well aligned, and that they may think the share price is too low. Of course, the future is what matters most. So if you are interested in Medivir, you should check out this free report on analyst forecasts for the company.
But note: Medivir 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, but not derivative transactions.
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