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Trade Alert: The Chief Financial Officer Of Ocean Yield ASA (OB:OCY), Eirik Eide, Has Just Spent US$805k Buying Shares

Simply Wall St

Even if it's not a huge purchase, we think it was good to see that Eirik Eide, the Chief Financial Officer of Ocean Yield ASA (OB:OCY) recently shelled out kr805k to buy stock, at kr40.25 per share. That might not be a big purchase but it only increased their holding by 5.7%, and could be interpreted as a good sign.

Check out our latest analysis for Ocean Yield

Ocean Yield Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Chief Executive Officer Lars Solbakken for kr3.8m worth of shares, at about kr45.00 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being kr38.35). Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

While Ocean Yield insiders bought shares last year, they didn't sell. The chart below shows insider transactions (by individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

OB:OCY Recent Insider Trading, March 1st 2020

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

For a common shareholder, it is worth checking how many shares are held by company 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. It appears that Ocean Yield insiders own 1.8% of the company, worth about kr119m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Ocean Yield Insider Transactions Indicate?

The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Ocean Yield. One for the watchlist, at least! Of course, the future is what matters most. So if you are interested in Ocean Yield, you should check out this free report on analyst forecasts for the company.

Of course Ocean Yield 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 editorial-team@simplywallst.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.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.