Erik Sneve Is The Chief Executive Officer of Magnora ASA (OB:MGN) And They Just Picked Up 5.2% More Shares

Even if it's not a huge purchase, we think it was good to see that Erik Sneve, the Chief Executive Officer of Magnora ASA (OB:MGN) recently shelled out kr564k to buy stock, at kr18.79 per share. Although the purchase is not a big one, increasing their shareholding by only 5.2%, it can be interpreted as a good sign.

View our latest analysis for Magnora

The Last 12 Months Of Insider Transactions At Magnora

Notably, that recent purchase by Erik Sneve is the biggest insider purchase of Magnora shares that we've seen in the last year. That means that an insider was happy to buy shares at around the current price of kr20.20. 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 Magnora share holders is that insiders were buying at near the current price.

In the last twelve months Magnora insiders were buying shares, but not selling. They paid about kr11.22 on average. We don't deny that it is nice to see insiders buying stock in the company. But we must note that the investments were made at well below today's share price. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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).

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. A high insider ownership often makes company leadership more mindful of shareholder interests. Magnora insiders own about kr163m worth of shares. That equates to 15% of the company. 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 Magnora Insiders?

The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Magnora. Looks promising! 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. Case in point: We've spotted 3 warning signs for Magnora you should be aware of.

Of course Magnora 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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