Trade Alert: The Group Chief Executive Officer Of SpareBank 1 SMN (OB:MING), Jan-Frode Janson, Has Just Spent kr588k Buying 12% More Shares

Even if it's not a huge purchase, we think it was good to see that Jan-Frode Janson, the Group Chief Executive Officer of SpareBank 1 SMN (OB:MING) recently shelled out kr588k to buy stock, at kr118 per share. That purchase might not be huge but it did increase their holding by 12%.

Our analysis indicates that MING is potentially undervalued!

SpareBank 1 SMN Insider Transactions Over The Last Year

Notably, that recent purchase by Jan-Frode Janson is the biggest insider purchase of SpareBank 1 SMN shares that we've seen in the last year. That means that an insider was happy to buy shares at above the current price of kr117. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

In the last twelve months SpareBank 1 SMN insiders were buying shares, but not selling. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, 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.

Insider Ownership Of SpareBank 1 SMN

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data indicates that SpareBank 1 SMN insiders own about kr54m worth of shares (which is 0.4% of the company). Whilst better than nothing, we're not overly impressed by these holdings.

So What Do The SpareBank 1 SMN Insider Transactions Indicate?

It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. Insiders likely see value in SpareBank 1 SMN shares, given these transactions (along with notable insider ownership of the company). So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. When we did our research, we found 2 warning signs for SpareBank 1 SMN (1 is a bit unpleasant!) that we believe deserve your full attention.

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 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.