Business management

Senior Vice President of Business Management John Thorneycroft has just purchased an additional 84% share in Pexip Holding ASA (OB:PEXIP)

While not a huge purchase, we think it was good to see that John Thorneycroft, Senior Vice President of Commercial Management at Pexip Holding ASA (OB:PEXIP) recently paid 51,000 kr to buy shares, at 18.51 kr per share. While not a massive buy, it increased their stake to 84%, which is probably a good sign.

Discover our latest analysis for Pexip Holding

The last 12 months of insider trading at Pexip Holding

Over the past year, we can see that the largest insider buy was made by insider Giles Chamberlin for 6.5 million kr of shares, at around 74.76 kr per share. It is therefore clear that an insider wanted to buy, even at a price higher than the current share price (ie 18.50 kr). Their perspective may have changed since then, but it at least shows that they were feeling optimistic at the time. For us, it is very important to consider the price that insiders pay for the shares. Generally speaking, it comes to our attention when insiders have bought stocks at higher prices than they are now, as it suggests that they thought the stock was worth buying, even at a higher price.

Over the past twelve months, Pexip Holding insiders have bought shares, but not sold. They paid around 57.42 kr on average. These trades suggest that insiders found the current price attractive. 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!

OB: PEXIP Insider Trading Volume May 16, 2022

Pexip Holding isn’t the only insider stock to buy. So take a look at this free list of growing companies with insider buying.

Insider ownership

I like to look at how many shares insiders own in a company, to help me get a sense of how aligned they are with insiders. I think it’s a good sign if insiders have a significant number of shares in the company. Insiders own 24% of the shares of Pexip Holding, worth approximately 444 million kr. We have certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest an alignment between insiders and other shareholders.

So what does this data suggest about Pexip Holding insiders?

Good to see recent purchases. And an analysis of last year’s transactions also gives us confidence. But on the other hand, the company has made a loss in the last year, which makes us a bit cautious. When combined with notable insider ownership, these factors suggest that Pexip Holding insiders are well aligned and most likely think the stock price is too low. Pleasant! 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 Pexip Holding that deserve your attention before buying shares.

But note: Pexip Holding may not be the best stock to buy. So take a look at this free list of interesting companies with high ROE and low debt.

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.

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.