Whilst it may not be a huge deal, we thought it was good to see that the Infront ASA (OB:INFRNT) Co-Owner & Head of Sales, Joachim Rosli, recently bought kr159k worth of stock, for kr15.90 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 36%.
Infront Insider Transactions Over The Last Year
In fact, the recent purchase by Co-Owner & Head of Sales Joachim Rosli was not their only acquisition of Infront shares this year. Earlier in the year, they paid kr21.00 per share in a kr210k purchase. That means that even when the share price was higher than kr15.50 (the recent price), an insider wanted to purchase shares. 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 Infront insiders bought shares last year, they didn't sell. Their average price was about kr18.90. I'd consider this a positive as it suggests insiders see value at around the current price, which is kr15.50. You can see the insider transactions (by individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
Infront is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Does Infront Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Infront insiders own about kr189m worth of shares. That equates to 28% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About Infront Insiders?
It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest Infront insiders are well aligned, and quite possibly think the share price is too low. Looks promising! While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Our analysis shows 3 warning signs for Infront (1 is a bit unpleasant!) and we strongly recommend you look at these before investing.
But note: Infront 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.
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