We’ve lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. On the other hand, we’d be remiss not to mention that insider sales have been known to precede tough periods for a business. So shareholders might well want to know whether insiders have been buying or selling shares in Gjensidige Forsikring ASA (OB:GJF).
What Is Insider Buying?
It’s quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, such insiders must disclose their trading activities, and not trade on inside information.
We don’t think shareholders should simply follow insider transactions. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Harvard University study found that ‘insider purchases earn abnormal returns of more than 6% per year.’
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The Last 12 Months Of Insider Transactions At Gjensidige Forsikring
While there weren’t any large insider transactions in the last twelve months, it’s still worth looking at the trading.
Over the last year, we can see that insiders have bought 4.60k shares worth øre576k. Overall, Gjensidige Forsikring insiders were net buyers last year. They paid about øre125 on average. These transactions show that insiders have confidence to invest their own money in the stock, albeit at slightly below the recent price of øre135. 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!
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Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Based on our data, Gjensidige Forsikring insiders have about 0.05% of the stock, worth approximately øre35m. We consider this fairly low insider ownership.
So What Does This Data Suggest About Gjensidige Forsikring Insiders?
There haven’t been any insider transactions in the last three months — that doesn’t mean much. However, our analysis of transactions over the last year is heartening. Insiders own shares in Gjensidige Forsikring and we see no evidence to suggest they are worried about the future. Of course, the future is what matters most. So if you are interested in Gjensidige Forsikring, you should check out this free report on analyst forecasts for the company.
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.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at email@example.com.