Whilst it may not be a huge deal, we thought it was good to see that the Borgestad ASA (OB:BOR) Chairman of the Board, Christen Knudsen, recently bought kr200k worth of stock, for kr10.00 per share. That might not be a big purchase but it only increased their holding by 0.8%, and could be interpreted as a good sign.
Borgestad Insider Transactions Over The Last Year
Notably, that recent purchase by Christen Knudsen is the biggest insider purchase of Borgestad shares that we've seen in the last year. So it's clear an insider wanted to buy, even at a higher price than the current share price (being kr9.40). Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Christen Knudsen was the only individual insider to buy shares in the last twelve months.
You can see the insider transactions (by individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insider Ownership of Borgestad
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. Borgestad insiders own 57% of the company, currently worth about kr68m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Does This Data Suggest About Borgestad Insiders?
It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss last year, which makes us a little cautious. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Borgestad. Nice! While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. To help with this, we've discovered 3 warning signs (1 is a bit unpleasant!) that you ought to be aware of before buying any shares in Borgestad.
Of course Borgestad 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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