Should You Take Comfort From Insider Transactions At AqualisBraemar ASA (OB:AQUA)?

It is not uncommon to see companies perform well in the years after insiders buy shares. 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 AqualisBraemar ASA (OB:AQUA).

Do Insider Transactions Matter?

Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock in the company. However, rules govern insider transactions, and certain disclosures are required.

We don't think shareholders should simply follow insider transactions. But it is perfectly logical to keep tabs on what insiders are doing. 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 AqualisBraemar

AqualisBraemar Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Chairman Glen Rodland bought kr2.3m worth of shares at a price of kr4.20 per share. We do like to see buying, but this purchase was made at well below the current price of kr9.15. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

In the last twelve months AqualisBraemar insiders were buying shares, but not selling. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

AqualisBraemar is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Does AqualisBraemar Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 31% of AqualisBraemar shares, worth about kr201m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About AqualisBraemar Insiders?

The fact that there have been no AqualisBraemar insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. With high insider ownership and encouraging transactions, it seems like AqualisBraemar insiders think the business has merit. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing AqualisBraemar. In terms of investment risks, we've identified 4 warning signs with AqualisBraemar and understanding them should be part of your investment process.

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.

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. 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.
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