Insider Buying: The Itera ASA (OB:ITE) Chief Executive Officer Just Bought kr1.4m Worth Of Shares

Investors who take an interest in Itera ASA (OB:ITE) should definitely note that the Chief Executive Officer, Arne Mjøs, recently paid kr13.40 per share to buy kr1.4m worth of the stock. However, it only increased shareholding by a small percentage, and it wasn't a huge purchase by absolute value, either.

See our latest analysis for Itera

The Last 12 Months Of Insider Transactions At Itera

Notably, that recent purchase by Chief Executive Officer Arne Mjøs was not the only time they bought Itera shares this year. They previously made an even bigger purchase of kr1.4m worth of shares at a price of kr9.70 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of kr14.40. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

While Itera insiders bought shares during the last year, they didn't sell. Their average price was about kr11.91. It's great to see insiders putting their own cash into the company's stock, albeit at below the recent share price. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

Itera is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Does Itera Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Itera insiders own about kr574m worth of shares (which is 50% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The Itera Insider Transactions Indicate?

It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Itera. That's what I like to see! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Itera. Every company has risks, and we've spotted 1 warning sign for Itera you should know about.

Of course Itera may not be the best stock to buy. So you may wish to see this free collection of high quality 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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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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