Insider Buying: The Novozymes A/S (CPH:NZYM B) Independent Chairman Just Bought 53% More Shares

Investors who take an interest in Novozymes A/S (CPH:NZYM B) should definitely note that the Independent Chairman, Jorgen Rasmussen, recently paid kr.347 per share to buy kr.1.0m worth of the stock. That certainly has us anticipating the best, especially since they thusly increased their own holding by 53%, potentially signalling some real optimism.

See our latest analysis for Novozymes

Novozymes Insider Transactions Over The Last Year

Notably, that recent purchase by Jorgen Rasmussen is the biggest insider purchase of Novozymes shares that we've seen in the last year. That means that an insider was happy to buy shares at around the current price of kr.358. Of course they may have changed their mind. But this suggests they are optimistic. 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. The good news for Novozymes share holders is that insiders were buying at near the current price.

In the last twelve months Novozymes insiders were buying shares, but not selling. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Does Novozymes Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. From what we can see in our data, insiders own only about kr.6.3m worth of Novozymes shares. This level of insider ownership is notably low, and not very encouraging.

What Might The Insider Transactions At Novozymes Tell Us?

It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Novozymes stock. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Novozymes.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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, but not derivative transactions.

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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.