Independent Chair of the Board of Norske Skog Arvid Grundekjon Buys 144% More Shares

Investors who take an interest in Norske Skog ASA (OB:NSKOG) should definitely note that the Independent Chair of the Board, Arvid Grundekjon, recently paid kr20.29 per share to buy kr1.2m worth of the stock. We reckon that's a good sign, especially since the purchase boosted their holding by 144%.

View our latest analysis for Norske Skog

The Last 12 Months Of Insider Transactions At Norske Skog

In fact, the recent purchase by Arvid Grundekjon was the biggest purchase of Norske Skog shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of kr21.20 per share to be enticing. 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. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for Norske Skog share holders is that insiders were buying at near the current price.

Happily, we note that in the last year insiders paid kr1.4m for 66.50k shares. But they sold 27.50k shares for kr1.1m. In total, Norske Skog insiders bought more than they sold over 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.

Does Norske Skog Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Our information indicates that Norske Skog insiders own about kr1.9m worth of shares. However, it's possible that insiders might have an indirect interest through a more complex structure. This level of insider ownership is notably low, and not very encouraging.

So What Do The Norske Skog Insider Transactions Indicate?

It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Norske Skog stock. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Case in point: We've spotted 4 warning signs for Norske Skog you should be aware of, and 1 of them is concerning.

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.