Selling kr5.2m worth of DNB Bank ASA (OB:DNB) stock at high prices would have gotten insiders a handsome reward

March 25, 2022
  •  Updated
September 06, 2022
OB:DNB
Source: Shutterstock

DNB Bank ASA's (OB:DNB) stock rose 3.8% last week, but insiders who sold kr5.2m worth of stock over the last year are probably in a more advantageous position. Selling at an average price of kr210, which is higher than the current price might have been the right call as holding on to stock would have meant their investment would be worth less now than it was at the time of sale.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for DNB Bank

DNB Bank Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Independent Director, Jaan Gjærum Semlitsch, sold kr5.2m worth of shares at a price of kr210 per share. That means that an insider was selling shares at around the current price of kr205. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign. The only individual insider seller over the last year was Jaan Gjærum Semlitsch.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

insider-trading-volume
OB:DNB Insider Trading Volume March 25th 2022

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Insider Ownership of DNB Bank

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. Insiders own 0.02% of DNB Bank shares, worth about kr61m, according to our data. We do generally prefer see higher levels of insider ownership.

What Might The Insider Transactions At DNB Bank Tell Us?

It doesn't really mean much that no insider has traded DNB Bank shares in the last quarter. We don't take much encouragement from the transactions by DNB Bank insiders. But it's good to see that insiders own shares in the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. While conducting our analysis, we found that DNB Bank has 1 warning sign and it would be unwise to ignore it.

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.

Valuation is complex, but we're helping make it simple.

Find out whether DNB Bank is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

View the Free Analysis