We’ve lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So we’ll take a look at whether insiders have been buying or selling shares in Voss Veksel- og Landmandsbank ASA (OB:VVL).
What Is Insider Buying?
It’s quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, most countries require that the company discloses such transactions to the market.
We don’t think shareholders should simply follow insider transactions. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Harvard University study found that ‘insider purchases earn abnormal returns of more than 6% per year.’
Voss Veksel- og Landmandsbank Insider Transactions Over The Last Year
Nils Ringheim made the biggest insider purchase in the last 12 months. That single transaction was for øre499k worth of shares at a price of øre128 each. That implies that an insider found the current (approximate) price enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. We generally consider it a positive if insiders have been buying on market, even if the share price has increased a bit since then.
In the last twelve months insiders paid øre1.1m for 8.54k shares purchased. In the last twelve months there was more buying than selling by Voss Veksel- og Landmandsbank insiders. The average buy price was around øre129. Although they bought at below the recent price of øre137 per share, it is good to see that insiders are willing to invest in the company. The chart below shows insider transactions (by individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
Voss Veksel- og Landmandsbank 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.
Voss Veksel- og Landmandsbank Insiders Bought Stock Recently
We saw some Voss Veksel- og Landmandsbank insider buying shares in the last three months. Insiders purchased øre215k worth of shares in that period. It’s good to see the insider buying, as well as the lack of recent sellers. However, in this case the amount invested recently is quite small.
Does Voss Veksel- og Landmandsbank Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it’s a good sign if insiders own a significant number of shares in the company. Our data isn’t picking up on much insider ownership at Voss Veksel- og Landmandsbank, though insiders do hold about øre2.3m worth of shares. But they may have an indirect interest through a corporate structure that we haven’t picked up on. We might be missing something but that seems like very low insider ownership.
What Might The Insider Transactions At Voss Veksel- og Landmandsbank Tell Us?
It is good to see recent purchasing. And an analysis of the transactions over the last year also gives 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 Voss Veksel- og Landmandsbank stock. Of course, the future is what matters most. So if you are interested in Voss Veksel- og Landmandsbank, you should check out this free report on analyst forecasts for the company.
Of course Voss Veksel- og Landmandsbank may not be the best stock to buy. So you may wish to see this free collection of high quality 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 email@example.com.