Are Insiders Selling Selvaag Bolig ASA (OB:SBO) Stock?

It is not uncommon to see companies perform well in the years after insiders buy shares. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So before you buy or sell Selvaag Bolig ASA (OB:SBO), you may well want to know whether insiders have been buying or selling.

What Is Insider Selling?

It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, rules govern insider transactions, and certain disclosures are required.

We don't think shareholders should simply follow insider transactions. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.

See our latest analysis for Selvaag Bolig

The Last 12 Months Of Insider Transactions At Selvaag Bolig

In the last twelve months, the biggest single sale by an insider was when the insider, Rune Thomassen, sold kr761k worth of shares at a price of kr61.62 per share. That means that an insider was selling shares at around the current price of kr51.70. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive). Rune Thomassen was the only individual insider to sell over the last year.

The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

I will like Selvaag Bolig 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 Selvaag Bolig 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. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Selvaag Bolig insiders own 2.1% of the company, worth about kr99m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Selvaag Bolig Tell Us?

The fact that there have been no Selvaag Bolig insider transactions recently certainly doesn't bother us. Our analysis of Selvaag Bolig insider transactions leaves us cautious. But we do like the fact that insiders own a fair chunk of the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Be aware that Selvaag Bolig is showing 4 warning signs in our investment analysis, and 1 of those is a bit concerning...

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

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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