Chief Executive Officer of Dampskibsselskabet Norden Picks Up 5.0% More Stock

Investors who take an interest in Dampskibsselskabet Norden A/S (CPH:DNORD) should definitely note that the Chief Executive Officer, Jan Rindbo, recently paid kr.191 per share to buy kr.955k worth of the stock. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 5.0%.

View our latest analysis for Dampskibsselskabet Norden

The Last 12 Months Of Insider Transactions At Dampskibsselskabet Norden

In fact, the recent purchase by Chief Executive Officer Jan Rindbo was not their only acquisition of Dampskibsselskabet Norden shares this year. Earlier in the year, they paid kr.276 per share in a kr.1.5m purchase. That means that even when the share price was higher than kr.196 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Jan Rindbo was the only individual insider to buy shares in the last twelve months.

Jan Rindbo bought 10.43k shares over the last 12 months at an average price of kr.235. 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 always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership Of Dampskibsselskabet Norden

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with 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. Based on our data, Dampskibsselskabet Norden insiders have about 0.5% of the stock, worth approximately kr.31m. However, it's possible that insiders might have an indirect interest through a more complex structure. We consider this fairly low insider ownership.

So What Does This Data Suggest About Dampskibsselskabet Norden Insiders?

The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. Given that insiders also own a fair bit of Dampskibsselskabet Norden we think they are probably pretty confident of a bright future. 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. Case in point: We've spotted 3 warning signs for Dampskibsselskabet Norden you should be aware of, and 1 of these is concerning.

Of course Dampskibsselskabet Norden may not be the best stock to buy. So you may wish to see this free collection of high quality 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 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.