We often see insiders buying back shares of companies that are performing well over the long term. Unfortunately, there are also many examples of stock prices plummeting after insiders sell stocks. We will therefore examine whether insiders have bought or sold shares of LerÃ¸y Seafood Group ASA (OB: KJV).
What is an insider?
It is perfectly legal for company insiders, including members of the board of directors, to buy and sell shares of a company. However, these insiders should disclose their trading activities and not trade on the basis of inside information.
We don’t believe shareholders should just follow insider trading. But also, we would consider it foolish to ignore insider trading altogether. For example, a Harvard University study found that “insider buying generates abnormal returns of over 6% per year.”
Check out our latest review for LerÃ¸y Seafood Group
The last 12 months of insider trading at LerÃ¸y Seafood Group
Over the past year, we can see that the biggest insider buy has been made by Group CEO Henning Beltestad at a value of SEK 999,000, at around SEK 55.50 per share. While we love to see insider buys, we note that this large buy was significantly lower than the recent price of 76.66 kr. Because it occurred at a lower valuation, it doesn’t tell us much about whether insiders might find the current price attractive.
You can see insider trading (by companies and individuals) over the past year represented in the graph below. By clicking on the graph below, you can see the precise detail of each insider trade!
LerÃ¸y Seafood Group is not the only one to buy. So take a look at this free list of growing companies with insider buying.
For an ordinary shareholder, it is worth checking out how many shares are owned by company insiders. Strong insider ownership often makes company management more attentive to the interests of shareholders. Our information indicates that LerÃ¸y Seafood Group insiders own around 3.2 million kr of shares. However, it is possible that insiders will have an indirect interest through a more complex structure. This level of insider ownership is particularly low and not very encouraging.
What could insider trading at LerÃ¸y Seafood Group tell us?
It doesn’t really mean much that no insider traded shares of LerÃ¸y Seafood Group in the last quarter. But insiders have shown more appetite for the title over the past year. The deals are going well, but it would be more encouraging if LerÃ¸y Seafood Group insiders bought more shares in the company. So, while it is useful to know what insiders are doing in terms of buying or selling, it is also useful to know the risks that a particular company faces. At Simply Wall St, we found 1 warning sign for LerÃ¸y Seafood Group that deserve your attention before buying stocks.
If you would rather consult with another company – one with potentially superior finances – then don’t miss this free list of interesting companies, which have a HIGH return on equity and low leverage.
For the purposes of this article, insiders are the persons who report their transactions to the relevant regulatory body. We currently account for open market transactions and private assignments, but not derivative transactions.
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This Simply Wall St article is general in nature. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative material. Simply Wall St has no position in any of the stocks mentioned.
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