Insider Buying: The DNB Bank ASA (OB:DNB) Independent Director Just Bought 100% More Shares

Investors who take an interest in DNB Bank ASA (OB:DNB) should definitely note that the Independent Director, Jens Olsen, recently paid kr181 per share to buy kr1.1m worth of the stock. That certainly has us anticipating the best, especially since they thusly increased their own holding by 100%, potentially signalling some real optimism.

View our latest analysis for DNB Bank

DNB Bank Insider Transactions Over The Last Year

Notably, that recent purchase by Jens Olsen is the biggest insider purchase of DNB Bank shares that we've seen in the last year. So it's clear an insider wanted to buy, at around the current price, which is kr187. 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 DNB Bank share holders is that an insider was buying at near the current price. The only individual insider to buy over the last year was Jens Olsen.

The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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 DNB Bank Boast High Insider Ownership?

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. Our data indicates that DNB Bank insiders own about kr67m worth of shares (which is 0.02% of the company). Whilst better than nothing, we're not overly impressed by these holdings.

What Might The Insider Transactions At DNB Bank Tell Us?

The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. Insiders likely see value in DNB Bank shares, given these transactions (along with notable insider ownership of the company). While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. For example - DNB Bank has 1 warning sign we think you should be aware of.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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, 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.