Otovo AS (OB:OTOVO) insiders are undoubtedly delighted they bought last year with gains to date at kr5.2m

Insiders who purchased Otovo AS (OB:OTOVO) shares in the past 12 months are unlikely to be deeply impacted by the stock's 10% decline over the past week. After accounting for the recent loss, the kr11m worth of shares they purchased is now worth kr16m, suggesting a good return on their investment.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for Otovo

Otovo Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Co-Founder Andreas Thorsheim for kr4.2m worth of shares, at about kr24.79 per share. That means that an insider was happy to buy shares at above the current price of kr23.95. It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. 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.

Over the last year, we can see that insiders have bought 679.95k shares worth kr11m. On the other hand they divested 200.00k shares, for kr3.7m. Overall, Otovo insiders were net buyers during the last year. The average buy price was around kr16.25. We don't deny that it is nice to see insiders buying stock in the company. However, we do note that they were buying at significantly lower prices than today's share price. 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!

Otovo 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 Otovo Have Sold Stock Recently

We've seen more insider selling than insider buying at Otovo recently. In total, Chief Operating Officer Anne Holstad sold kr3.7m worth of shares in that time. On the flip side, insiders spent kr1.2m on purchasing shares. Generally this level of net selling might be considered a bit bearish.

Does Otovo 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. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Otovo insiders own 9.6% of the company, worth about kr313m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Otovo Tell Us?

The insider sales have outweighed the insider buying, at Otovo, in the last three months. In contrast, they appear keener if you look at the last twelve months. We are also comforted by the high levels of insider ownership. So we're happy to look past recent trading. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. While conducting our analysis, we found that Otovo has 2 warning signs and it would be unwise to ignore them.

Of course Otovo 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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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.