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 BV (OB:SBVG).
What Is Insider Selling?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, rules govern insider transactions, and certain disclosures are required.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Harvard University study found that ‘insider purchases earn abnormal returns of more than 6% per year.’
SpareBank 1 BV Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Deputy Chair Heine Wang bought kr995k worth of shares at a price of kr36.85 per share. That means that an insider was happy to buy shares at around the current price of kr37.70. 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. While we always like to see insider buying, it’s less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. Happily, the SpareBank 1 BV insiders decided to buy shares at close to current prices.
Over the last year, we can see that insiders have bought 55218 shares worth kr2.0m. But they sold 2525 for kr96k. In total, SpareBank 1 BV insiders bought more than they sold over the last year. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Insiders at SpareBank 1 BV Have Bought Stock Recently
We saw some SpareBank 1 BV insider buying shares in the last three months. They bought kr476k worth in that time. But Britt Westlin sold kr75k worth. It is good to see that insiders have been buying, but they did not buy very many shares, in the scheme of things.
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Based on our data, SpareBank 1 BV insiders have about 1.8% of the stock, worth approximately kr43m. But they may have an indirect interest through a corporate structure that we haven’t picked up on. We consider this fairly low insider ownership.
What Might The Insider Transactions At SpareBank 1 BV Tell Us?
It’s certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest SpareBank 1 BV insiders are well aligned, and that they may think the share price is too low. Of course, the future is what matters most. So if you are interested in SpareBank 1 BV, you should check out this free report on analyst forecasts for the company.
But note: SpareBank 1 BV 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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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.