While not a huge purchase, we think it was good to see that Geir Skau, the Director of Human Resources and Corporate Services at DNO ASA (OB:DNO) recently paid 485,000 kr to buy shares, at 14.89 kr per share. While not the biggest purchase, it actually increased their shareholding by 127%, which is good to see.
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The last 12 months of insider trading at DNO
In fact, the recent purchase by Geir Skau was the largest purchase of DNO shares by an insider in the past twelve months, according to our records. It is therefore clear that an insider wanted to buy, even at a price higher than the current share price (ie 14.64 kr). Their perspective may have changed since then, but it at least shows that they were feeling optimistic at the time. In our view, the price an insider pays for a stock is very important. It is encouraging to see an insider paid above the current stock price, as it suggests that they have perceived value even at higher levels. Geir Skau was the only individual insider to buy shares in the last twelve months.
You can see a visual representation of insider trading (by companies and individuals) over the past 12 months, below. If you want to know exactly who sold, how much and when, just click on the chart below!
There are always plenty of stocks that insiders are buying. So if it suits your style you can check each stock one by one or you can take a look at this free list of companies. (Hint: insiders bought them).
Insider ownership
Examining the total insider holdings in a company can help you know if they are well aligned with common shareholders. I think it’s a good sign if insiders have a significant number of shares in the company. DNO insiders own 12% of the company, which is currently worth around 1.9 billion kr based on the recent share price. Most shareholders would be happy to see this type of insider ownership, as it suggests that management’s incentives are well aligned with those of other shareholders.
What could insider trading at DNO tell us?
The recent insider buying is encouraging. We also rely on the longer-term picture of insider trading. When combined with notable insider ownership, these factors suggest that DNO insiders are well aligned and most likely think the stock price is too low. One for the watchlist, at least! While we like to know what’s going on with insider ownership and trading, we also make sure to consider the risks a stock faces before making any investment decisions. Our analysis shows 2 warning signs for DNO (1 does not suit us too much!) and we strongly recommend that you consult them before investing.
Sure, you might find a fantastic investment by looking elsewhere. So take a look at this free list of interesting companies.
For the purposes of this article, insiders are persons who report their transactions to the relevant regulatory body. We currently record open market transactions and private dispositions, but not derivative transactions.
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Find out if DNO is potentially overvalued or undervalued by viewing our full analysis, which includes fair value estimates, risks and warnings, dividends, insider trading and financial health.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.
