We’d be surprised if Komplett Bank ASA (OB:KOMP) shareholders haven’t noticed that the Chief Marketing & Information Officer, Steffen Ryengen, recently sold kr1.7m worth of stock at kr8.40 per share. The eyebrow raising move amounted to a reduction of 11.8% in their holding.
The Last 12 Months Of Insider Transactions At Komplett Bank
The Director of Risk Control, Wilhelm Thomassen, made the biggest insider sale in the last 12 months. That single transaction was for kr13m worth of shares at a price of kr8.40 each. That means that an insider was selling shares at slightly below the current price (kr8.80). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it’s only a weak signal. This single sale was just 43.4% of Wilhelm Thomassen’s stake.
Happily, we note that in the last year insiders paid kr5.2m for 500k shares. But they sold 1.7m for kr14m. Over the last year we saw more insider selling of Komplett Bank shares, than buying. The average sell price was around kr8.40. It’s not ideal to see that insiders have sold at around the current price. Since insiders sell for many reasons, we wouldn’t put too much weight on it. 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 Komplett Bank
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. Komplett Bank insiders own about kr161m worth of shares. That equates to 10% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At Komplett Bank Tell Us?
The stark truth for Komplett Bank is that there has been more insider selling than insider buying in the last three months. Despite some insider buying, the longer term picture doesn’t make us feel much more positive. But since Komplett Bank is profitable and growing, we’re not too worried by this. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn’t make us feel confident about the company. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
But note: Komplett Bank may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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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