We often see insiders buying up shares in companies that perform well over the long term. 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 Nordvest (OB:SNOR).
What Is Insider Buying?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, most countries require that the company discloses such transactions to the market.
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 Nordvest Insider Transactions Over The Last Year
Chief Executive Officer Odd Folland made the biggest insider purchase in the last 12 months. That single transaction was for øre460k worth of shares at a price of øre115 each. That means that even when the share price was higher, an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. That purchase may suggest an expectation of positive returns over the long term.
Happily, we note that in the last year insiders bought 16.67k shares for a total of øre1.9m. Overall, Sparebank 1 Nordvest insiders were net buyers last year. They paid about øre113 on average. These transactions suggest that insiders have considered the current price of øre107 attractive. The chart below shows insider transactions over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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Sparebank 1 Nordvest Insiders Bought Stock Recently
Over the last three months, we’ve seen a bit of insider buying at Sparebank 1 Nordvest. Odd Folland bought øre223k worth of shares in that time. It’s good to see the insider buying, as well as the lack of recent sellers. But the amount invested in the last three months isn’t enough for us too put much weight on it, as a single factor.
Does Sparebank 1 Nordvest 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. Sparebank 1 Nordvest insiders own about øre3.8m worth of shares (which is 13% of the company). Whilst better than nothing, we’re not overly impressed by these holdings.
So What Do The Sparebank 1 Nordvest Insider Transactions Indicate?
It’s certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Sparebank 1 Nordvest stock. Of course, the future is what matters most. So if you are interested in Sparebank 1 Nordvest, you should check out this free report on analyst forecasts for the company.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.