Insider Buying: The Kværner ASA (OB:KVAER) President & CEO Just Bought kr433k Worth Of Shares

Whilst it may not be a huge deal, we thought it was good to see that the Kværner ASA (OB:KVAER) President & CEO, Karl-Petter Loken, recently bought kr433k worth of stock, for kr10.82 per share. While that isn’t the hugest buy, it actually boosted their shareholding by 718.1%, which is good to see.

Check out our latest analysis for Kværner

Kværner Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Chairman Leif-Arne Langøy bought kr1.9m worth of shares at a price of kr12.93 per share. That means that even when the share price was higher than kr10.43 (the recent price), an insider wanted to purchase shares. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company’s future. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

In the last twelve months insiders paid kr3.4m for 265k shares purchased. While Kværner insiders bought shares last year, they didn’t sell. You can see the insider transactions (by individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

OB:KVAER Recent Insider Trading, August 17th 2019
OB:KVAER Recent Insider Trading, August 17th 2019

Does Kværner Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company 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. Our data suggests Kværner insiders own 0.5% of the company, worth about kr14m. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. We consider this fairly low insider ownership.

So What Do The Kværner Insider Transactions Indicate?

It’s certainly positive 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 Kværner insiders are well aligned, and that they may think the share price is too low. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

But note: Kværner may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.