The Medical Developments International Ltd (ASX: MVP) share price has managed to rise 0.4% today even after a major sale of shares by the company's chairman.
In an announcement to the market this morning, the company said its chairman, Mr David Williams, had sold 4.35 million shares at $5.40 per share. The sale was thus worth around $23.5 million in total.
Although investors are right to ask questions when a major company insider sells their shares, it does not always mean investors should follow them out the door. For one, Mr Williams said he sold the shares to "make room for two large European Institutional investors". He also maintains a substantial indirect interest in the business with almost 13.7 million shares, suggesting he is still well-aligned with long-term shareholders.
Medical Developments is an Australian business that delivers emergency medical solutions, including pain relief and respiratory products. One of its major products is Penthrox which is non-addictive and inhaled by patients for quick pain relief after trauma. The product has been growing quickly – both locally and internationally – and was recently recommended for use in all UK ambulances.
The Medical Developments share price has risen just over 14% over the past three months and has more than quadrupled over the past five years. While investors should be on alert for any further selloffs by company insiders, the shares could be worth the attention of long-term investors today.
