Whilst it may not be a huge deal, we thought it was good to see that the Flex LNG Ltd. (OB:FLNG) Principal Executive Officer, Øystein Kalleklev, recently bought kr207k worth of stock, for kr41.48 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 13%.

View our latest analysis for Flex LNG

The Last 12 Months Of Insider Transactions At Flex LNG

Over the last year, we can see that the biggest insider purchase was by Independent Director Nikolai Grigoriev for kr704k worth of shares, at about kr42.95 per share. That means that an insider was happy to buy shares at above the current price of kr42.16. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

In the last twelve months Flex LNG insiders were buying shares, but not selling. The average buy price was around kr61.35. These transactions suggest that insiders have considered the current price attractive. The chart below shows insider transactions (by 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!

Flex LNG 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 Flex LNG Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data isn't picking up on much insider ownership at Flex LNG, though insiders do hold about kr7.9m worth of shares. But they may have an indirect interest through a corporate structure that we haven't picked up on. This level of insider ownership is notably low, and not very encouraging.

So What Do The Flex LNG Insider Transactions Indicate?

It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Flex LNG insiders are expecting a bright future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we've found that Flex LNG has 4 warning signs (2 are concerning!) that deserve your attention before going any further with your analysis.