Insider transaction activity can help investors make more informed decisions. Insiders are some of the most informed participants in the market meaning their buying and selling activity can provide valuable trading signals.
In this report, we are going to highlight some interesting insider buying at Belships ASA (BELCO:NO). Belships is a fully integrated ship owner and operator that is headquartered in Oslo, Norway. The company, which owns a modern fleet of Supramax and Ultramax vessels, provides shipping transportation services to customers and partners all over the world. It is listed on the Oslo Stock Exchange and currently has a market capitalization of NOK 5.24 billion.
Belships ASA: Insider Buying
Our data shows that between June 16 and June 17, two insiders at Belships purchased stocks. Those who snapped up shares were:
- CEO Lars Christian Skarsgård (100,000 shares @ NOK 20.00 per share)
- Board Frode Teigen (1,000,000 shares @ NOK 20.64 per share)
Combined, these two insiders spent around NOK 22.6 million (approx. $2.4 million) on stock.
This trading activity is worth highlighting for several reasons.
Firstly, both of these insiders have extensive experience in the shipping industry. Mr. Skarsgård has served as CEO of Belships since March 2019 and has substantial experience in areas such as shipbroking, ship owning, and management. Before joining Belships, he served as Director and Global head of S&P with international shipbroking company Fearnleys AS.
Meanwhile, Mr. Teigen is the owner of Kontrari AS and Kontrazi AS – private holding companies with substantial investments in shipping and fishing companies including Belships ASA, Egersund Group AS, Fjord Line AS and Nordic Halibut AS. Previously, he held various management positions in the bulker owner Thoresen Thai in addition to being one of the largest shareholders in the company. This experience means that they are likely to have a good understanding of Belships’ prospects.
Secondly, both insiders have made well-timed purchases in the recent past. Late last year, for example, both Mr. Skarsgård and Mr. Teigen picked up shares when the stock was trading in the NOK 13-14 range. Since then, the stock has surpassed the NOK 25 level. This suggests that the insiders have a good read on the stock’s movements.
Shipping companies are enjoying strong profits right now thanks to supply and demand imbalances and Belships is no exception.
In the first quarter of 2022, for example, operating income amounted to USD $229.5 million, up from USD $76.4 million a year earlier. Meanwhile, net income was USD $59.5 million, up from USD $16.5 million in the first quarter of 2021.
On the back of these strong results, the group declared an ordinary dividend of USD $26.2 million (NOK 1.00 per share) as well as an extraordinary dividend of USD $32.7 million (NOK 1.25 per share).
In terms of the outlook, Belships noted that sentiment in the Supra/Ultramax market remains strong and that this is expected to continue in the near term. Freight Forward Agreements (FFA) for Supramax currently indicate a market average of about USD $29,000 for the remaining part of the year, which is an increase of 10% from its previous report. The company added that supply is historically low and that it remains optimistic in relation to market prospects.
In light of these results, we see the insider buying here as a bullish indicator.