This Insider Has Just Sold Shares In Pareto Bank ASA (OB:PARB)

Investors may wish to note that an insider of Pareto Bank ASA, Erik Skarbøvig, recently netted kr1.0m from selling stock, receiving an average price of kr51.73. It might not be a huge sale, but it did reduce their holding size 22%, hardly encouraging.

Check out our latest analysis for Pareto Bank

Pareto Bank Insider Transactions Over The Last Year

Notably, that recent sale by Erik Skarbøvig is the biggest insider sale of Pareto Bank shares that we've seen in the last year. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of kr51.90. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was only 22%of Erik Skarbøvig's holding.

Pareto Bank insiders didn't buy any shares over the last year. 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!

I will like Pareto Bank better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Insider Ownership

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with 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 7.1% of Pareto Bank shares, worth about kr258m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Pareto Bank Insiders?

Insiders haven't bought Pareto Bank stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. On the plus side, Pareto Bank makes money, and is growing profits. It is good to see high insider ownership, but the insider selling leaves us cautious. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To that end, you should learn about the 3 warning signs we've spotted with Pareto Bank (including 1 which is a bit concerning).

But note: Pareto 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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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.