Chief Executive Officer Vincent Graziani Just Bought 189% More Shares In IDEX Biometrics ASA (OB:IDEX)

Even if it's not a huge purchase, we think it was good to see that Vincent Graziani, the Chief Executive Officer of IDEX Biometrics ASA (OB:IDEX) recently shelled out kr578k to buy stock, at kr1.65 per share. Even though that isn't a massive buy, it did increase their holding by 189%, which is arguably a good sign.

View our latest analysis for IDEX Biometrics

IDEX Biometrics Insider Transactions Over The Last Year

In fact, the recent purchase by Vincent Graziani was the biggest purchase of IDEX Biometrics shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, at around the current price, which is kr1.72. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the IDEX Biometrics insiders decided to buy shares at close to current prices.

IDEX Biometrics insiders may have bought shares in the last year, but they didn't sell any. They paid about kr1.09 on average. To my mind it is good that insiders have invested their own money in the company. But we must note that the investments were made at well below today's share price. 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!

IDEX Biometrics is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership

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. Insiders own 9.1% of IDEX Biometrics shares, worth about kr123m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At IDEX Biometrics Tell Us?

It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest IDEX Biometrics insiders are well aligned, and quite possibly think the share price is too low. Looks promising! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing IDEX Biometrics. At Simply Wall St, we've found that IDEX Biometrics has 5 warning signs (3 are a bit unpleasant!) that deserve your attention before going any further with your analysis.

Of course IDEX Biometrics 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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