Insider Buying: The Sparebanken Sør (OB:SOR) Chief Executive Officer Just Bought 14% More Shares

By
Simply Wall St
Published
May 21, 2021
OB:SOR
Source: Shutterstock

Potential Sparebanken Sør (OB:SOR) shareholders may wish to note that the Chief Executive Officer, Geir Bergskaug, recently bought kr1.2m worth of stock, paying kr128 for each share. That's a very decent purchase to our minds and it grew their holding by a solid 14%.

See our latest analysis for Sparebanken Sør

Sparebanken Sør Insider Transactions Over The Last Year

Notably, that recent purchase by Geir Bergskaug is the biggest insider purchase of Sparebanken Sør shares that we've seen in the last year. That implies that an insider found the current price of kr133 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 Sparebanken Sør insider decided to buy shares at close to current prices. Geir Bergskaug was the only individual insider to buy during the last year.

Geir Bergskaug bought a total of 14.00k shares over the year at an average price of kr120. You can see a visual depiction of insider transactions (by companies and 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!

insider-trading-volume
OB:SOR Insider Trading Volume May 22nd 2021

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.

Does Sparebanken Sør Boast High 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. From looking at our data, insiders own kr41m worth of Sparebanken Sør stock, about 2.0% of the company. However, it's possible that insiders might have an indirect interest through a more complex structure. We prefer to see high levels of insider ownership.

What Might The Insider Transactions At Sparebanken Sør Tell Us?

It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest Sparebanken Sør insiders are well aligned, and that they may think the share price is too low. 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 assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Sparebanken Sør.

Of course Sparebanken Sør may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

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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