Chairman of NorAm Drilling Picks Up 16% More Stock

Whilst it may not be a huge deal, we thought it was good to see that the NorAm Drilling AS (OB:NORAM) Chairman, Ole Hjertaker, recently bought kr960k worth of stock, for kr32.00 per share. While we're hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 16%.

See our latest analysis for NorAm Drilling

The Last 12 Months Of Insider Transactions At NorAm Drilling

Notably, that recent purchase by Ole Hjertaker is the biggest insider purchase of NorAm Drilling shares that we've seen in the last year. So it's clear an insider wanted to buy, at around the current price, which is kr34.60. 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 do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. The good news for NorAm Drilling share holders is that an insider was buying at near the current price. Ole Hjertaker was the only individual insider to buy during the last year.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Insider Ownership Of NorAm Drilling

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. NorAm Drilling insiders own about kr732m worth of shares (which is 49% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The NorAm Drilling Insider Transactions Indicate?

It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. Once you factor in the high insider ownership, it certainly seems like insiders are positive about NorAm Drilling. Looks promising! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing NorAm Drilling. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of NorAm Drilling.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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 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.