Cinclus Pharma Holding Insiders Recover Some Losses, Which Stand At kr100k
Insiders who bought kr654.1k worth of Cinclus Pharma Holding AB (publ) (STO:CINPHA) stock in the last year have seen some of their losses recouped as the stock gained 12% last week. However, total losses seen by insiders are still kr100k since the time of purchase.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
The Last 12 Months Of Insider Transactions At Cinclus Pharma Holding
In the last twelve months, the biggest single purchase by an insider was when CEO & President Christer Ahlberg bought kr497k worth of shares at a price of kr17.13 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being kr13.20). It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
Cinclus Pharma Holding insiders may have bought shares in the last year, but they didn't sell any. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
See our latest analysis for Cinclus Pharma Holding
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.
Insiders At Cinclus Pharma Holding Have Bought Stock Recently
We saw some Cinclus Pharma Holding insider buying shares in the last three months. Chief Medical Officer Kajsa Larsson bought kr157k worth of shares in that time. It's great to see that insiders are only buying, not selling. However, in this case the amount invested recently is quite small.
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. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 11% of Cinclus Pharma Holding shares, worth about kr68m, according to our data. But they may have an indirect interest through a corporate structure that we haven't picked up on. We do generally prefer see higher levels of insider ownership.
So What Do The Cinclus Pharma Holding Insider Transactions Indicate?
It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. Given that insiders also own a fair bit of Cinclus Pharma Holding we think they are probably pretty confident of a bright future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we've found that Cinclus Pharma Holding has 4 warning signs (1 is a bit concerning!) that deserve your attention before going any further with your analysis.
Of course Cinclus Pharma Holding 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 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.