Co-Chief Executive Officer of North Energy Didrik Leikvang Buys 74% More Shares

Investors who take an interest in North Energy ASA (OB:NORTH) should definitely note that the Co-Chief Executive Officer, Didrik Leikvang, recently paid kr2.81 per share to buy kr1.4m worth of the stock. That certainly has us anticipating the best, especially since they thusly increased their own holding by 74%, potentially signalling some real optimism.

See our latest analysis for North Energy

The Last 12 Months Of Insider Transactions At North Energy

Notably, that recent purchase by Didrik Leikvang is the biggest insider purchase of North Energy shares that we've seen in the last year. That implies that an insider found the current price of kr2.81 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. 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. The good news for North Energy share holders is that insiders were buying at near the current price.

North Energy insiders may have bought shares in the last year, but they didn't sell any. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

North Energy is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Does North Energy 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. North Energy insiders own 40% of the company, currently worth about kr133m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The North Energy Insider Transactions Indicate?

The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest North Energy insiders are well aligned, and quite possibly think the share price is too low. One for the watchlist, at least! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Be aware that North Energy is showing 4 warning signs in our investment analysis, and 2 of those are concerning...

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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 of direct interests only, but not derivative transactions or indirect interests.

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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.