Insider Sellers Might Regret Selling Moberg Pharma Shares at a Lower Price Than Current Market Value

Moberg Pharma AB (publ)’s (STO:MOB) value has fallen 14% in the last week, but insiders who sold kr5.2m worth of stock over the last year have had less success. Insiders would probably have been better off holding on to their shares given that the average selling price of kr11.25 is still lower than the current share price.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

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Moberg Pharma Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Independent Director, Richard Ding, for kr5.2m worth of shares, at about kr11.25 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. It’s of some comfort that this sale was conducted at a price well above the current share price, which is kr10.12. So it is hard to draw any strong conclusion from it. Richard Ding was the only individual insider to sell over the last year.

In the last twelve months insiders purchased 42.71k shares for kr399k. On the other hand they divested 458.06k shares, for kr5.2m. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Check out our latest analysis for Moberg Pharma

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Insiders At Moberg Pharma Have Sold Stock Recently

Over the last three months, we’ve seen notably more insider selling, than insider buying, at Moberg Pharma. In that time, Independent Director Richard Ding dumped kr5.2m worth of shares. On the other hand we note insiders bought kr399k worth of shares , as previously mentioned . Since the selling really does outweigh the buying, we’d say that these transactions may suggest that some insiders feel the shares are not cheap.

Does Moberg Pharma Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Moberg Pharma insiders own about kr75m worth of shares. That equates to 16% of the company. While this is a strong but not outstanding level of insider ownership, it’s enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Moberg Pharma Tell Us?

The insider sales have outweighed the insider buying, at Moberg Pharma, in the last three months. And our longer term analysis of insider transactions didn’t bring confidence, either. Insiders own shares, but we’re still pretty cautious, given the history of sales. We’re in no rush to buy! So these insider transactions can help us build a thesis about the stock, but it’s also worthwhile knowing the risks facing this company. You’d be interested to know, that we found 3 warning signs for Moberg Pharma and we suggest you have a look.

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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.