Insider Buyers Lose Additional kr158k As OKEA Dips To kr2.8b

The recent price decline of 12% in OKEA ASA's (OB:OKEA) stock may have disappointed insiders who bought kr1.07m worth of shares at an average price of kr31.21 in the past 12 months. Insiders invest with the hopes of seeing their money grow in value over time. However, as a result of recent losses, their initial investment is now only worth kr909.7k, which is not what they expected.

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

View our latest analysis for OKEA

The Last 12 Months Of Insider Transactions At OKEA

The Chief Executive Officer Svein Liknes made the biggest insider purchase in the last 12 months. That single transaction was for kr780k worth of shares at a price of kr31.21 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being kr26.60). Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for 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 OKEA insiders were buying shares, but not selling. 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!

OKEA is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Does OKEA Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 4.3% of OKEA shares, worth about kr120m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The OKEA Insider Transactions Indicate?

The fact that there have been no OKEA insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. With high insider ownership and encouraging transactions, it seems like OKEA insiders think the business has merit. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing OKEA. Case in point: We've spotted 1 warning sign for OKEA you should be aware of.

But note: OKEA 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 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.