Bullish Hunter Group Insiders Rewarded As Their Investment Rises To US$19.0m

Hunter Group ASA (OB:HUNT) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 15%, resulting in a kr45m rise in the company's market capitalisation, translating to a gain of 89% on their initial investment. Put another way, the original US$10.1m acquisition is now worth US$19.0m.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for Hunter Group

Hunter Group Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Independent Chairman of Board Morten Astrup for kr7.5m worth of shares, at about kr1.50 per share. We do like to see buying, but this purchase was made at well below the current price of kr2.63. 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.

Over the last year, we can see that insiders have bought 7.22m shares worth kr10m. But they sold 1.77m shares for kr1.6m. Overall, Hunter Group insiders were net buyers during the last year. 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!

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insiders At Hunter Group Have Bought Stock Recently

Over the last quarter, Hunter Group insiders have spent a meaningful amount on shares. Specifically, Independent Director Bertel Steen bought kr917k worth of shares in that time, and we didn't record any sales whatsoever. This could be interpreted as suggesting a positive outlook.

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. A high insider ownership often makes company leadership more mindful of shareholder interests. Hunter Group insiders own about kr87m worth of shares. That equates to 24% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Hunter Group Tell Us?

It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest Hunter Group insiders are well aligned, and that they may think the share price is too low. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Our analysis shows 6 warning signs for Hunter Group (3 shouldn't be ignored!) and we strongly recommend you look at these before investing.

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 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.