Investors who take an interest in Mowi ASA (OB:MOWI) should definitely note that the Deputy Chairman, Alf-Helge Aarskog, recently paid kr154 per share to buy kr1.5m worth of the stock. That certainly has us anticipating the best, especially since they thusly increased their own holding by 2,959%, potentially signalling some real optimism.
View our latest analysis for Mowi
Mowi Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the Director, Cecilie Fredriksen, for kr49m worth of shares, at about kr188 per share. So we know that an insider sold shares at around the present share price of kr159. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern. Cecilie Fredriksen was the only individual insider to sell shares in the last twelve months.
Happily, we note that in the last year insiders paid kr3.0m for 17.70k shares. But they sold 262.32k shares for kr49m. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
I will like Mowi better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Does Mowi Boast High 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that Mowi insiders own 15% of the company, worth about kr12b. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Do The Mowi Insider Transactions Indicate?
It's certainly positive to see the recent insider purchase. On the other hand the transaction history, over the last year, isn't so positive. Overall, we'd prefer see a more sustained buying from directors, but with a significant insider holding and more recent purchases, Mowi insiders are reasonably well aligned, and optimistic for the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Mowi. You'd be interested to know, that we found 2 warning signs for Mowi and we suggest you have a look.
But note: Mowi 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, but not derivative transactions.
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