Bullish insiders at Osteopore Limited (ASX:OSX) loaded up on AU$2.4m of stock earlier this year
In the last year, multiple insiders have substantially increased their holdings of Osteopore Limited (ASX:OSX) stock, indicating that insiders' optimism about the company's prospects has increased.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
View our latest analysis for Osteopore
The Last 12 Months Of Insider Transactions At Osteopore
The insider Marcus Liew made the biggest insider purchase in the last 12 months. That single transaction was for AU$1.9m worth of shares at a price of AU$0.21 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$0.13). 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. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Notably Marcus Liew was also the biggest seller.
In the last twelve months insiders purchased 12.01m shares for AU$2.4m. On the other hand they divested 10.14m shares, for AU$2.0m. In total, Osteopore insiders bought more than they sold over the last year. 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!
Osteopore is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Osteopore insiders own 50% of the company, worth about AU$7.7m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Does This Data Suggest About Osteopore Insiders?
The fact that there have been no Osteopore insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. Judging from their transactions, and high insider ownership, Osteopore insiders feel good about the company's future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Osteopore. To that end, you should learn about the 5 warning signs we've spotted with Osteopore (including 3 which are a bit unpleasant).
But note: Osteopore 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.
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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.
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