Investors who take an interest in DNB ASA (OB:DNB) should definitely note that the Group Executive Vice President of Markets, Morten Opstad, recently paid kr120 per share to buy kr1.1m worth of the stock. That certainly has us anticipating the best, especially since they thusly increased their own holding by 56%, potentially signalling some real optimism.
The Last 12 Months Of Insider Transactions At DNB
In the last twelve months, the biggest single purchase by an insider was when Group Chief Financial Officer Ottar Ertzeid bought kr1.8m worth of shares at a price of kr121 per share. That means that an insider was happy to buy shares at above the current price of kr117. 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. In our view, the price an insider pays 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.
In the last twelve months DNB insiders were buying shares, but not selling. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
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. From our data, it seems that DNB insiders own 0.04% of the company, worth about kr65m. We do generally prefer see higher levels of insider ownership.
So What Does This Data Suggest About DNB Insiders?
It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest DNB insiders are well aligned, and that they may think the share price is too low. 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. In terms of investment risks, we've identified 2 warning signs with DNB and understanding these should be part of your investment process.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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, but not derivative transactions.
If you spot an error that warrants correction, please contact the editor at email@example.com. 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. Simply Wall St has no position in the stocks mentioned.
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