Nordic Entertainment Group AB (publ) (STO:NENT B) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 3.2%, resulting in a kr1.3b rise in the company’s market capitalisation. In other words, the original kr1.7m purchase is now worth kr2.2m.
Although we don’t think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
View our latest analysis for Nordic Entertainment Group
Nordic Entertainment Group Insider Transactions Over The Last Year
The Executive VP & Chief Content Officer Filippa Wallestam made the biggest insider purchase in the last 12 months. That single transaction was for kr599k worth of shares at a price of kr419 each. Even though the purchase was made at a significantly lower price than the recent price (kr515), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn’t tell us much about what they think of current prices.
Nordic Entertainment Group insiders may have bought shares in the last year, but they didn’t sell any. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Nordic Entertainment Group 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 Nordic Entertainment Group 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Our data indicates that Nordic Entertainment Group insiders own about kr67m worth of shares (which is 0.2% of the company). We do generally prefer see higher levels of insider ownership.
So What Do The Nordic Entertainment Group Insider Transactions Indicate?
There haven’t been any insider transactions in the last three months — that doesn’t mean much. However, our analysis of transactions over the last year is heartening. Insiders do have a stake in Nordic Entertainment Group and their transactions don’t cause us concern. In addition to knowing about insider transactions going on, it’s beneficial to identify the risks facing Nordic Entertainment Group. You’d be interested to know, that we found 5 warning signs for Nordic Entertainment Group and we suggest you have a look.
Of course Nordic Entertainment Group 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 decide to trade Nordic Entertainment Group, use the lowest-cost* platform that is rated #1 Overall by Barron’s, Interactive Brokers. Trade stocks, options, futures, forex, bonds and funds on 135 markets, all from a single integrated account. Promoted
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
