CEO & President of Nordic Semiconductor Vegard Wollan Buys 160% More Shares

Those following along with Nordic Semiconductor ASA (OB:NOD) will no doubt be intrigued by the recent purchase of shares by Vegard Wollan, CEO & President of the company, who spent a stonking kr8.3m on stock at an average price of kr104. That purchase boosted their holding by 160%, which makes us wonder if the move was inspired by quietly confident deeply-felt optimism.

View our latest analysis for Nordic Semiconductor

Nordic Semiconductor Insider Transactions Over The Last Year

In fact, the recent purchase by Vegard Wollan was the biggest purchase of Nordic Semiconductor shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at around the current price of kr104. That means they have been optimistic about the company in the past, though they may have changed their mind. 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 Nordic Semiconductor share holders is that insiders were buying at near the current price.

Over the last year, we can see that insiders have bought 250.77k shares worth kr26m. On the other hand they divested 10.88k shares, for kr1.4m. In the last twelve months there was more buying than selling by Nordic Semiconductor insiders. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

Nordic Semiconductor is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Does Nordic Semiconductor Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Nordic Semiconductor insiders own 11% of the company, worth about kr2.1b. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Nordic Semiconductor Insider Transactions Indicate?

It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest Nordic Semiconductor insiders are well aligned, and quite possibly think the share price is too low. One for the watchlist, at least! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 1 warning sign for Nordic Semiconductor you should be aware of.

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 of direct interests only, but not derivative transactions or indirect interests.

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