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We’ve lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. 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 we’ll take a look at whether insiders have been buying or selling shares in SpareBank 1 SMN (OB:MING).
What Is Insider Selling?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, such insiders must disclose their trading activities, and not trade on inside information.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Harvard University study found that ‘insider purchases earn abnormal returns of more than 6% per year.’
SpareBank 1 SMN Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Mette Kamsvåg bought øre497k worth of shares at a price of øre88.74 per share. That implies that an insider found the current price of øre98.50 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today’s share price, as the discount to value may have narrowed with the rising price. The good news for SpareBank 1 SMN share holders is that insiders were buying at near the current price.
Happily, we note that in the last year insiders bought 8937 shares for a total of øre785k. In the last twelve months SpareBank 1 SMN insiders were buying shares, but not selling. 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 SpareBank 1 SMN
For a common shareholder, it is worth checking how many shares are held by company 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 SpareBank 1 SMN insiders own about øre83m worth of shares (which is 0.7% of the company). We do generally prefer see higher levels of insider ownership.
So What Does This Data Suggest About SpareBank 1 SMN Insiders?
The fact that there have been no SpareBank 1 SMN insider transactions recently certainly doesn’t bother us. On a brighter note, the transactions over the last year are encouraging. Insiders do have a stake in SpareBank 1 SMN and their transactions don’t cause us concern. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for SpareBank 1 SMN.
But note: SpareBank 1 SMN 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 aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
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.