Have Insiders Sold Norbit Shares Recently?

We'd be surprised if Norbit ASA (OB:NORBT) shareholders haven't noticed that an insider, Peter Eriksen, recently sold kr3.8m worth of stock at kr170 per share. On the bright side, that sale was only 2.4% of their holding, so we doubt it's very meaningful, on its own.

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The Last 12 Months Of Insider Transactions At Norbit

In fact, the recent sale by Peter Eriksen was the biggest sale of Norbit shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to take some cash off the table, even below the current price of kr195. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 2.4% of Peter Eriksen's holding.

In total, Norbit insiders sold more than they bought over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

View our latest analysis for Norbit

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Insider Ownership Of Norbit

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. Norbit insiders own 13% of the company, currently worth about kr1.6b based on the recent share price. 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 Does This Data Suggest About Norbit Insiders?

Insiders haven't bought Norbit stock in the last three months, but there was some selling. Zooming out, the longer term picture doesn't give us much comfort. But since Norbit is profitable and growing, we're not too worried by this. It is good to see high insider ownership, but the insider selling leaves us cautious. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. You'd be interested to know, that we found 1 warning sign for Norbit and we suggest you have a look.

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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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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.