Need To Know: Sparebanken Sør (OB:SOR) Insiders Have Been Buying Shares

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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 shareholders might well want to know whether insiders have been buying or selling shares in Sparebanken Sør (OB:SOR).

What Is Insider Selling?

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.

Insider transactions are not the most important thing when it comes to long-term investing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Columbia University study found that ‘insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers’.

View our latest analysis for Sparebanken Sør

Sparebanken Sør Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Chief Executive Officer Geir Bergskaug bought øre1.6m worth of shares at a price of øre98.77 per share. That means that even when the share price was higher than øre93.00 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it’s very important to consider the price insiders pay for shares is very important. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

Happily, we note that in the last year insiders bought 44000 shares for a total of øre4.2m. While Sparebanken Sør insiders bought shares last year, they didn’t sell. The chart below shows insider transactions (by individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

OB:SOR Recent Insider Trading, May 31st 2019
OB:SOR Recent Insider Trading, May 31st 2019

Sparebanken Sør is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insiders at Sparebanken Sør Have Bought Stock Recently

It’s good to see that Sparebanken Sør insiders have made notable investments in the company’s shares. Overall, four insiders shelled out øre2.6m for shares in the company — and none sold. This makes one think the business has some good points.

Insider Ownership of Sparebanken Sør

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. From looking at our data, insiders own øre17m worth of Sparebanken Sør stock, about 1.2% of the company. However, it’s possible that insiders might have an indirect interest through a more complex structure. I generally like to see higher levels of ownership.

So What Does This Data Suggest About Sparebanken Sør Insiders?

It’s certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. Insiders likely see value in Sparebanken Sør shares, given these transactions (along with notable insider ownership of the company). Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Sparebanken Sør.

If you would prefer to check out another company — one with potentially superior financials — then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.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.