Midsona AB is a Swedish company that specialises in organic and plant-based foods and consumer healthcare products. The company owns a range of brands including Naturdiet, Swebar, and Friggs, and sells its products through a range of sales channels. It is listed on the OMX Nordic Exchange Stockholm and currently has a market capitalisation of SEK 4.0 billion.
Share price strength
Midsona shares have had a good run recently. Since mid-March, the shares have risen from SEK 33 to SEK 61 – a rise of approximately 85%. One reason the stock has surged is that the company has released strong Q1 and Q2 results. Q2 results, issued on 21 July, showed an increase in sales of 22% along with a 24% rise in earnings per share.
Source: 2iQ Research
Insider selling: large CFO sale
What has caught our attention here is the fact that CFO Lennart Svensson has just sold 25,953 shares, reducing his personal holding by 94%. Now, Svensson is set to leave Midsona in 2021 as he is turning 60, so this sale could well be a retirement planning move. However, it’s worth pointing out that a number of other insiders at Midsona have also sold shares over the last few months, including Supply Chain Director Tobias Traneborn and Nordics Division Director Ulrika Palm. Two institutional investors also sold large amounts of stock in January. All things considered, we see this pattern of insider selling as bearish. Given that multiple insiders have been offloading shares recently, we think caution is warranted towards Midsona right now.