Need To Know: SpareBank 1 BV (OB:SBVG) Insiders Have Been Buying Shares

It is not uncommon to see companies perform well in the years after insiders buy shares. 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 Buying?

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 don't think shareholders should simply follow insider transactions. But it is perfectly logical to keep tabs on what insiders are doing. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise'.

Check out our latest analysis for SpareBank 1 BV

The Last 12 Months Of Insider Transactions At SpareBank 1 BV

In the last twelve months, the biggest single purchase by an insider was when Chief Executive Officer Rune Fjeldstad bought kr441k worth of shares at a price of kr33.00 per share. That implies that an insider found the current price of kr41.20 per share to be enticing. 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.

While SpareBank 1 BV insiders bought shares during the last year, they didn't sell. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

SpareBank 1 BV is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Does SpareBank 1 BV Boast High Insider Ownership?

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. Based on our data, SpareBank 1 BV insiders have about 0.8% of the stock, worth approximately kr22m. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. I generally like to see higher levels of ownership.

So What Does This Data Suggest About SpareBank 1 BV Insiders?

It doesn't really mean much that no insider has traded SpareBank 1 BV shares in the last quarter. However, our analysis of transactions over the last year is heartening. Overall we don't see anything to make us think SpareBank 1 BV insiders are doubting the company, and they do own shares. 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. While conducting our analysis, we found that SpareBank 1 BV has 1 warning sign and it would be unwise to ignore this.

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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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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