Whilst it may not be a huge deal, we thought it was good to see that the Episurf Medical AB (publ) (STO:EPIS B) CEO & Sales Director, Pål Ryfors, recently bought kr101k worth of stock, for kr2.90 per share. Although the purchase is not a big one, increasing their shareholding by only 2.3%, it can be interpreted as a good sign.
The Last 12 Months Of Insider Transactions At Episurf Medical
Over the last year, we can see that the biggest insider purchase was by Independent Director Christian Krüeger for kr460k worth of shares, at about kr2.30 per share. Even though the purchase was made at a significantly lower price than the recent price (kr2.91), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn’t tell us much about what they think of current prices.
Episurf Medical insiders may have bought shares in the last year, but they didn’t sell any. They paid about kr1.77 on average. To my mind it is good that insiders have invested their own money in the company. However, you should keep in mind that they bought when the share price was meaningfully below today’s levels. You can see the insider transactions (by companies and 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!
Episurf Medical 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.
Does Episurf Medical Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. From looking at our data, insiders own kr21m worth of Episurf Medical stock, about 3.2% of the company. We prefer to see high levels of insider ownership.
So What Does This Data Suggest About Episurf Medical Insiders?
It is good to see recent purchasing. 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. Insiders likely see value in Episurf Medical shares, given these transactions (along with notable insider ownership of the company). So these insider transactions can help us build a thesis about the stock, but it’s also worthwhile knowing the risks facing this company. Every company has risks, and we’ve spotted 5 warning signs for Episurf Medical (of which 2 shouldn’t be ignored!) you should know about.
But note: Episurf Medical 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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