Should You Take Comfort From Insider Transactions At Grieg Seafood ASA (OB:GSF)?

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It is not uncommon to see companies perform well in the years after insiders buy shares. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So we’ll take a look at whether insiders have been buying or selling shares in Grieg Seafood ASA (OB:GSF).

What Is Insider Selling?

It’s quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, such insiders must disclose their trading activities, and not trade on inside information.

We don’t think shareholders should simply follow insider transactions. But equally, we would consider it foolish to ignore insider transactions altogether. As Peter Lynch said, ‘insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.’

View our latest analysis for Grieg Seafood

The Last 12 Months Of Insider Transactions At Grieg Seafood

Chief Human Resources Officer Kathleen Mathisen made the biggest insider purchase in the last 12 months. That single transaction was for øre439k worth of shares at a price of øre108 each. That implies that an insider found the current price of øre127 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. If someone buys shares at well below current prices, it’s a good sign on balance, but keep in mind they may no longer see value. The good news for Grieg Seafood share holders is that insiders were buying at near the current price.

Over the last year, we can see that insiders have bought 22298 shares worth øre2.5m. In the last twelve months Grieg Seafood insiders were buying shares, but not selling. The chart below shows insider transactions (by individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

OB:GSF Recent Insider Trading, June 11th 2019
OB:GSF Recent Insider Trading, June 11th 2019

Grieg Seafood 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.

Insiders at Grieg Seafood Have Bought Stock Recently

It’s good to see that Grieg Seafood insiders have made notable investments in the company’s shares. Overall, three insiders shelled out øre1.2m for shares in the company — and none sold. This could be interpreted as suggesting a positive outlook.

Insider Ownership of Grieg Seafood

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Based on our data, Grieg Seafood insiders have about 0.3% of the stock, worth approximately øre37m. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. I generally like to see higher levels of ownership.

So What Do The Grieg Seafood Insider Transactions Indicate?

It’s certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. Insiders likely see value in Grieg Seafood shares, given these transactions (along with notable insider ownership of the company). Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Grieg Seafood.

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

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.