Favourable Signals For Spar Nord Bank: Numerous Insiders Acquired Stock

Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of Spar Nord Bank A/S (CPH:SPNO), that sends out a positive message to the company's shareholders.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for Spar Nord Bank

Spar Nord Bank Insider Transactions Over The Last Year

The Independent Director Henrik Sjogreen made the biggest insider purchase in the last 12 months. That single transaction was for kr.1.8m worth of shares at a price of kr.118 each. So it's clear an insider wanted to buy, at around the current price, which is kr.124. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. In this case we're pleased to report that the insider purchases were made at close to current prices.

In the last twelve months insiders purchased 21.10k shares for kr.2.5m. But they sold 6.00k shares for kr.785k. In total, Spar Nord Bank insiders bought more than they sold over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Spar Nord Bank is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Spar Nord Bank Insiders Are Selling The Stock

The last three months saw some Spar Nord Bank insider selling. kr.785k worth of shares were sold by CEO & Member of Executive Board Lasse Nyby. But at least we saw kr.510k worth of buying. While it's not great to see insider selling, the net amount sold isn't enough for us to want to read anything into it.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. From our data, it seems that Spar Nord Bank insiders own 0.3% of the company, worth about kr.49m. Whilst better than nothing, we're not overly impressed by these holdings.

So What Does This Data Suggest About Spar Nord Bank Insiders?

The insider sales have outweighed the insider buying, at Spar Nord Bank, in the last three months. On the other hand, the insider transactions over the last year are encouraging. It's good to see insiders are shareholders. So we're happy enough to look past some selling. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 2 warning signs for Spar Nord Bank you should be aware of, and 1 of them is a bit concerning.

But note: Spar Nord Bank may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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.