Are Insiders Buying SpareBank 1 SMN (OB:MING) Stock?

It is not uncommon to see companies perform well in the years after insiders buy shares. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So before you buy or sell SpareBank 1 SMN (OB:MING), you may well want to know whether insiders have been buying or selling.

What Is Insider Buying?

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.

Insider transactions are not the most important thing when it comes to long-term investing. But equally, we would consider it foolish to ignore insider transactions altogether. 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'.

View our latest analysis for SpareBank 1 SMN

SpareBank 1 SMN Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Group Chief Executive Officer Jan-Frode Janson bought kr724k worth of shares at a price of kr72.40 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of kr107. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

SpareBank 1 SMN insiders may have bought shares in the last year, but they didn't sell any. You can see the insider transactions (by companies and 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!

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.

Insiders at SpareBank 1 SMN Have Bought Stock Recently

Over the last three months, we've seen a bit of insider buying at SpareBank 1 SMN. Insiders shelled out kr96k for shares in that time. We like it when there are only buyers, and no sellers. But in this case the amount purchased means the recent transaction may not be very meaningful on its own.

Insider Ownership of SpareBank 1 SMN

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 4.1% of SpareBank 1 SMN shares, worth about kr563m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At SpareBank 1 SMN Tell Us?

It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about SpareBank 1 SMN. Nice! Of course, the future is what matters most. So if you are interested in SpareBank 1 SMN, you should check out this free report on analyst forecasts for the company.

Of course SpareBank 1 SMN 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, but not derivative transactions.

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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. 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.
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