Even if it's not a huge purchase, we think it was good to see that Jacob Tveraabak, the Chief Executive Officer of StrongPoint ASA (OB:STRONG) recently shelled out kr169k to buy stock, at kr10.83 per share. While we're hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 19%.
The Last 12 Months Of Insider Transactions At StrongPoint
Notably, that recent purchase by Chief Executive Officer Jacob Tveraabak was not the only time they bought StrongPoint shares this year. They previously made an even bigger purchase of kr328k worth of shares at a price of kr12.29 per share. That means that an insider was happy to buy shares at above the current price of kr10.60. 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 generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
StrongPoint insiders may have bought shares in the last year, but they didn't sell any. The chart below shows insider transactions (by individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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).
Does StrongPoint Boast High Insider Ownership?
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. Our data indicates that StrongPoint insiders own about kr66m worth of shares (which is 14% of the company). However, it's possible that insiders might have an indirect interest through a more complex structure. We do generally prefer see higher levels of insider ownership.
So What Does This Data Suggest About StrongPoint Insiders?
It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest StrongPoint insiders are well aligned, and that they may think the share price is too low. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing StrongPoint. For example - StrongPoint has 3 warning signs we think you should be aware of.
Of course StrongPoint 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.
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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