With Norske Skog Up 16%, Insider Buyers Count Their Returns

Insiders who bought Norske Skog ASA (OB:NSKOG) stock in the last 12 months were richly rewarded last week. The company's market value increased by kr293m as a result of the stock's 16% gain over the same period. In other words, the original kr2.22m purchase is now worth kr2.66m.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

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Norske Skog Insider Transactions Over The Last Year

The Independent Chair of the Board Arvid Grundekjon made the biggest insider purchase in the last 12 months. That single transaction was for kr1.2m worth of shares at a price of kr20.29 each. We do like to see buying, but this purchase was made at well below the current price of kr24.80. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

In the last twelve months Norske Skog 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. By clicking on the graph below, you can see the precise details of each insider transaction!

Check out our latest analysis for Norske Skog

Norske Skog is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Norske Skog Insiders Bought Stock Recently

Over the last three months, we've seen a bit of insider buying at Norske Skog. Director Terje Sagbakken shelled out kr294k for shares in that time. It's good to see the insider buying, as well as the lack of recent sellers. But the amount invested in the last three months isn't enough for us too put much weight on it, as a single factor.

Does Norske Skog Boast High Insider Ownership?

Many investors like to check how much of a company is owned by 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. Our data suggests Norske Skog insiders own 0.7% of the company, worth about kr15m. But they may have an indirect interest through a corporate structure that we haven't picked up on. I generally like to see higher levels of ownership.

What Might The Insider Transactions At Norske Skog Tell Us?

The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. Given that insiders also own a fair bit of Norske Skog we think they are probably pretty confident of a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Norske Skog. At Simply Wall St, we've found that Norske Skog has 3 warning signs (1 is a bit unpleasant!) that deserve your attention before going any further with your analysis.

But note: Norske Skog 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.