Northern Ocean Insider Confidence Rewarded, Stock Hits kr2.7b Market Cap

Insiders who bought Northern Ocean Ltd. (OB:NOL) stock in the last 12 months were richly rewarded last week. The company's market value increased by kr267m as a result of the stock's 11% gain over the same period. As a result, the stock they originally bought for US$1.91m is now worth US$2.21m.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for Northern Ocean

The Last 12 Months Of Insider Transactions At Northern Ocean

In the last twelve months, the biggest single purchase by an insider was when Chief Financial Officer Jonas Ytreland bought kr1.9m worth of shares at a price of kr12.72 per share. We do like to see buying, but this purchase was made at well below the current price of kr14.74. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

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!

Northern Ocean is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Does Northern Ocean 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 isn't picking up on much insider ownership at Northern Ocean, though insiders do hold about kr2.2m worth of shares. But they may have an indirect interest through a corporate structure that we haven't picked up on. We might be missing something but that seems like very low insider ownership.

So What Does This Data Suggest About Northern Ocean Insiders?

It doesn't really mean much that no insider has traded Northern Ocean shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. We'd like to see bigger individual holdings. However, we don't see anything to make us think Northern Ocean insiders are doubting the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of Northern Ocean.

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.