While Redcare Pharmacy shares languish near their yearly lows, a starkly different narrative is unfolding within the company’s boardroom. The stock, having shed approximately 53% of its value this year to trade around €61.70, is being met with significant insider buying—a clear vote of confidence from those with the deepest understanding of the business.
Insider Purchases Defy the Downtrend
Over the past twelve months, executives and board members have engaged in substantial net buying. Their acquisitions totaled roughly €1.7 million, decisively outweighing sales of €576,000. The most compelling detail is the price level of these transactions. Insiders paid an average of about €111 per share, nearly double the current market price.
A notable purchase came from supervisory board member Michael Köhler, who invested nearly €400,000 at a price of approximately €101 per share. This willingness to pay a premium suggests that company leadership views the present valuation as fundamentally disconnected from the firm’s intrinsic worth.
Operational Momentum Driven by Digital Prescriptions
The confidence displayed by insiders appears rooted in a tangible business turnaround, evidenced by the company’s third-quarter 2025 results. Revenue grew by 25% to reach €719 million. This surge was powered primarily by an 82% explosion in German prescription medication (Rx) sales.
This rebound marks a critical operational pivot following previous declines in the Rx segment and serves to confirm the financial guidance for the full year 2025. Profitability also saw a modest improvement, with the adjusted EBITDA margin rising to 2.4%.
Should investors sell immediately? Or is it worth buying Redcare Pharmacy?
Analysts Project Significant Upside
The growing chasm between the company’s improving fundamentals and its depressed share price is a focal point for market researchers. Currently, six analysts rate the stock a ‘buy,’ with no ‘sell’ recommendations on the table. The consensus price target stands at €142.75, implying a potential doubling in value from current levels.
Institutions like Deutsche Bank, with a €214 target, and Berenberg, targeting €165, maintain their bullish outlooks. Even a recent upgrade by UBS from ‘sell’ to ‘neutral’ in November provided only temporary relief, failing to sustainably reverse the prevailing downward trend on the charts.
Technical Picture Remains Under Pressure
Despite the positive fundamental signals, the technical analysis presents a more challenging view. The share price is trading well below all its key moving averages, with a gap of over 35% below the 200-day line.
For investors, the €60 zone now represents a critical technical support level. A sustained break below the 52-week low of €60.35 could trigger further selling pressure. However, the substantial insider ownership of 14% and the reaffirmed annual targets provide a solid foundation from which to defend this level.
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