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We often see insiders buying up shares in companies that perform well over the long term. On the other hand, we’d be remiss not to mention that insider sales have been known to precede tough periods for a business. So shareholders might well want to know whether insiders have been buying or selling shares in Aurskog Sparebank (OB:AURG).
What Is Insider Selling?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, most countries require that the company discloses such transactions to the market.
We don’t think shareholders should simply follow insider transactions. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Columbia University study found that ‘insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers’.
Aurskogrebank Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the Director, Kjell-Tore Skedsmo, sold øre2.0m worth of shares at a price of øre202 per share. So what is clear is that an insider saw fit to sell at around the current price of øre198. While we don’t usually like to see insider selling, it’s more concerning if the sales take price at a lower price. In this case, the big sale took place at around the current price, so it’s not too bad (but it’s still not a positive).
Happily, we note that in the last year insiders paid øre256k for 1300 shares. On the other hand they divested 24000 shares, for øre4.8m. In total, Aurskogrebank insiders sold more than they bought over the last year. You can see the insider transactions (by individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
Insider Ownership of Aurskogrebank
Many investors like to check how much of a company is owned by insiders. I reckon it’s a good sign if insiders own a significant number of shares in the company. It appears that Aurskogrebank insiders own 27% of the company, worth about øre127m. We’ve certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The Aurskogrebank Insider Transactions Indicate?
The fact that there have been no Aurskogrebank insider transactions recently certainly doesn’t bother us. While we feel good about high insider ownership of Aurskogrebank, we can’t say the same about the selling of shares. Of course, the future is what matters most. So if you are interested in Aurskogrebank, you should check out this free report on analyst forecasts for the company.
Of course Aurskogrebank 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.
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If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.