Those following along with Atea ASA (OB:ATEA) will no doubt be intrigued by the recent purchase of shares by Ib Kunøe, Chairman of the Board of the company, who spent a stonking kr31m on stock at an average price of kr70.82. While that only increased their holding size by 1.6%, it is still a big swing by our standards.
The Last 12 Months Of Insider Transactions At Atea
In fact, the recent purchase by Ib Kunøe was the biggest purchase of Atea shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at around the current price of kr72.80. That means they have been optimistic about the company in the past, though they may have changed their mind. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. In this case we're pleased to report that the insider purchases were made at close to current prices.
Happily, we note that in the last year insiders paid kr42m for 541.17k shares. But insiders sold 10000 shares worth kr1.2m. In the last twelve months there was more buying than selling by Atea insiders. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Atea is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership of Atea
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Atea insiders own about kr2.0b worth of shares (which is 25% of the company). 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 Do The Atea Insider Transactions Indicate?
The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest Atea insiders are well aligned, and quite possibly think the share price is too low. That's what I like to see! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Atea. At Simply Wall St, we found 1 warning sign for Atea that deserve your attention before buying any shares.
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 firstname.lastname@example.org. 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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