Have Norbit Insiders Been Selling Stock?

We'd be surprised if Norbit ASA (OB:NORBT) shareholders haven't noticed that the Business Unit Director of Oceans, Peter Eriksen, recently sold kr1.5m worth of stock at kr63.90 per share. However, the silver lining is that the sale only reduced their total holding by 2.8%, so we're hesitant to read anything much into it, on its own.

See our latest analysis for Norbit

The Last 12 Months Of Insider Transactions At Norbit

Notably, that recent sale by Peter Eriksen is the biggest insider sale of Norbit shares that we've seen in the last year. That means that even when the share price was slightly below the current price of kr64.60, an insider wanted to cash in some shares. 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. It is worth noting that this sale was only 2.8% of Peter Eriksen's holding.

Over the last year, we can see that insiders have bought 5.08k shares worth kr327k. But insiders sold 55.96k shares worth kr3.6m. In total, Norbit insiders sold more than they bought over the last year. 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!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Does Norbit Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Norbit insiders own 32% of the company, worth about kr1.3b. 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 Does This Data Suggest About Norbit Insiders?

Insiders sold stock recently, but they haven't been buying. And our longer term analysis of insider transactions didn't bring confidence, either. But it is good to see that Norbit is growing earnings. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Every company has risks, and we've spotted 1 warning sign for Norbit you should know about.

But note: Norbit may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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.