Chief Executive Officer Vincent Graziani Just Bought 19% More Shares In IDEX Biometrics ASA (OB:IDEX)

Those following along with IDEX Biometrics ASA (OB:IDEX) will no doubt be intrigued by the recent purchase of shares by Vincent Graziani, Chief Executive Officer of the company, who spent a stonking kr37m on stock at an average price of kr246. Aside from being a solid chunk in its own right, the deft move also saw their holding increase by some 19%.

Check out our latest analysis for IDEX Biometrics

IDEX Biometrics Insider Transactions Over The Last Year

Notably, that recent purchase by Vincent Graziani is the biggest insider purchase of IDEX Biometrics shares that we've seen in the last year. That means that even when the share price was higher than kr3.05 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

While IDEX Biometrics insiders bought shares during the last year, they didn't sell. The average buy price was around kr88.19. These transactions suggest that insiders have considered the current price attractive. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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

Insider Ownership

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. Insiders own 20% of IDEX Biometrics shares, worth about kr563m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At IDEX Biometrics Tell Us?

The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about IDEX Biometrics. 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. Every company has risks, and we've spotted 5 warning signs for IDEX Biometrics (of which 1 makes us a bit uncomfortable!) you should know about.

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.

If you’re looking to trade IDEX Biometrics, open an account with the lowest-cost* platform trusted by professionals, Interactive Brokers. Their clients from over 200 countries and territories trade stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted

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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.