Have Selvaag Bolig ASA (OB:SBO) Insiders Been Selling Their Stock?

Some Selvaag Bolig ASA (OB:SBO) shareholders may be a little concerned to see that the Chief Operating Officer, Oystein Klungland, recently sold a substantial kr4.6m worth of stock at a price of kr56.11 per share. That sale reduced their total holding by 22% which is hardly insignificant, but far from the worst we've seen.

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Selvaag Bolig Insider Transactions Over The Last Year

In fact, the recent sale by Oystein Klungland was the biggest sale of Selvaag Bolig shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was slightly below the current price of kr56.40, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 22% of Oystein Klungland's holding.

All up, insiders sold more shares in Selvaag Bolig than they bought, 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 click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Insider Ownership of Selvaag Bolig

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. It appears that Selvaag Bolig insiders own 2.4% of the company, worth about kr124m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About Selvaag Bolig Insiders?

Unfortunately, there has been more insider selling of Selvaag Bolig stock, than buying, in the last three months. Zooming out, the longer term picture doesn't give us much comfort. But it is good to see that Selvaag Bolig is growing earnings. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. To help with this, we've discovered 4 warning signs (1 is significant!) that you ought to be aware of before buying any shares in Selvaag Bolig.

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, but not derivative transactions.

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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. 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.
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