Redcare Pharmacy Leadership Demonstrates Conviction with Major Share Purchases

Redcare Pharmacy NL0012044747

Senior executives and board members at Redcare Pharmacy have made a substantial vote of confidence in the company's equity, committing significant personal capital over the past year. Despite a steep decline in the share price, these insiders have been net buyers, acquiring stock at prices far above current trading levels. This activity raises a compelling question about the potential disconnect between internal expectations and market sentiment.

Over the last twelve months, corporate insiders have purchased shares worth approximately €1.66 million on a net basis. Transaction data reveals purchases of 14,870 shares for about €1.7 million, contrasted with sales of only 5,000 shares valued at €576,000. This lopsided activity represents a clear signal of belief in the company's long-term trajectory from those who know it best.

Key transactions include:
* Largest Single Purchase: Supervisory Board member Michael Köhler invested €399,000 at a price of roughly €101 per share.
* Chairman's Move: Dr. Björn Söder, Chairman of the Supervisory Board, added to his holding in mid-November.
* Average Purchase Price: Insiders paid an average of €111 per share, nearly double the current trading price.
* Total Insider Holding: Management and board members collectively own about 14% of the company, a stake worth approximately €172 million.

Notably, these acquisitions were executed at prices significantly higher than today's level, with the stock currently trading near €62.

Financial Performance Contrasts Share Price Weakness

The company's operational results for the third quarter of 2025 presented a stark contrast to its stock market performance. Redcare Pharmacy confirmed strong growth, with quarterly revenue climbing 25% to €719 million. A standout performer was the German prescription medication (Rx) business, which surged 82% year-over-year, driven by the ongoing adoption of the digital E-Rezept (e-prescription). The adjusted EBITDA margin came in at 2.4%. Management reaffirmed its full-year guidance, anticipating revenue growth exceeding 25% and an EBITDA margin between 2.0% and 2.5%.

The digital transformation of Germany's healthcare sector, particularly the shift from brick-and-mortar pharmacies to online platforms, continues to benefit the Rx segment.

Strategic Appointment of New Finance Chief

In a move to bolster its digital expertise, Redcare Pharmacy appointed Hendrik Krampe as its new Chief Financial Officer, effective December 1. The Supervisory Board appointed Krampe to the Management Board, with formal confirmation expected at the Annual General Meeting in April 2026.

Krampe brings two decades of relevant experience from major e-commerce players Amazon and eBay. He spent eight years leading the finance department for Amazon's European marketplace business. His deep knowledge in scaling digital business models is expected to strengthen both the prescription (Rx) and over-the-counter (OTC) segments.

Analyst Sentiment Remains Bullish

Current analyst coverage reflects optimism. Seven analysts rate the shares as a 'buy,' with none issuing a 'sell' recommendation. Price targets range from a conservative €74 to a bullish €214, with the average target standing at €142.75—more than twice the current market price.

Despite this outlook, the company's market capitalization has contracted to approximately €1.25 billion, down from €2.68 billion at the end of 2024. Investors will be watching for the release of the full 2025 annual report on March 4, 2026.