Even if it’s not a huge purchase, we think it was good to see that Tuva Barnholt, the Senior Vice President of Purchasing & Strategic Sourcing of Borregaard ASA (OB:BRG) recently shelled out kr59k to buy stock, at kr77.95 per share. That might not be a big purchase but it only increased their holding by 3.9%, and could be interpreted as a good sign.
The Last 12 Months Of Insider Transactions At Borregaard
In fact, the recent purchase by Senior Vice President of Purchasing & Strategic Sourcing Tuva Barnholt was not their only trade of Borregaard shares this year. Earlier in the year, they sold shares at a price ofkr92.00 per share in a -kr1.1m transaction. That means that an insider was selling shares at slightly below the current price (kr111). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don’t know for sure what they think of the stock price. It is worth noting that this sale was only 38% of Tuva Barnholt’s holding.
Happily, we note that in the last year insiders paid kr842k for 10.53k shares. On the other hand they divested 12000 shares, for kr1.1m. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 0.5% of Borregaard shares, worth about kr60m, according to our data. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. We do generally prefer see higher levels of insider ownership.
So What Do The Borregaard Insider Transactions Indicate?
It is good to see recent purchasing. But we can’t say the same for the transactions over the last 12 months. While recent transactions indicate confidence in Borregaard, insiders don’t own enough of the company to overcome our cautiousness about the longer term transactions. In short they are likely aligned with shareholders. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
But note: Borregaard may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.
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.
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