The Chief Executive Officer of Byggma ASA (OB:BMA), Geir Drangsland, Just Bought A Few More Shares

By
Simply Wall St
Published
July 07, 2021
OB:BMA
Source: Shutterstock

Investors who take an interest in Byggma ASA (OB:BMA) should definitely note that the Chief Executive Officer, Geir Drangsland, recently paid kr35.00 per share to buy kr3.5m worth of the stock. However, it only increased shareholding by a small percentage, and it wasn't a huge purchase by absolute value, either.

View our latest analysis for Byggma

The Last 12 Months Of Insider Transactions At Byggma

Notably, that recent purchase by Geir Drangsland is the biggest insider purchase of Byggma shares that we've seen in the last year. So it's clear an insider wanted to buy, even at a higher price than the current share price (being kr30.40). It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

Happily, we note that in the last year insiders paid kr6.9m for 200.00k shares. But they sold 200.00k shares for kr6.9m. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
OB:BMA Insider Trading Volume July 8th 2021

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership of Byggma

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. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Byggma insiders own 96% of the company, worth about kr2.1b. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Byggma Tell Us?

We can't make any useful conclusions about recent trading, since insider buying and selling has been balanced. While we gain confidence from high insider ownership of Byggma, we can't say the same about their transactions in the last year, in the absence of further purchases. 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. Every company has risks, and we've spotted 4 warning signs for Byggma you should know about.

Of course Byggma 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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