Yahoo Finance Bullish OPKO Health Insiders Loaded Up On US$12.9m Of Stock
Quite a few insiders have dramatically grown their holdings in OPKO Health, Inc. (NASDAQ:OPK) over the past 12 months. An insider's optimism about the company's prospects is a positive sign.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
Check out our latest analysis for OPKO Health
OPKO Health Insider Transactions Over The Last Year
In fact, the recent purchase by Chairman & CEO Phillip Frost was not their only acquisition of OPKO Health shares this year. They previously made an even bigger purchase of US$1.5m worth of shares at a price of US$0.98 per share. We do like to see buying, but this purchase was made at well below the current price of US$1.37. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
OPKO Health insiders may have bought shares in the last year, but they didn't sell any. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
OPKO Health is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
OPKO Health Insiders Bought Stock Recently
It's good to see that OPKO Health insiders have made notable investments in the company's shares. Chairman & CEO Phillip Frost spent US$2.2m on stock, and there wasn't any selling. That shows some optimism about the company's future.
Insider Ownership
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. OPKO Health insiders own about US$488m worth of shares (which is 50% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Does This Data Suggest About OPKO Health Insiders?
It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Once you factor in the high insider ownership, it certainly seems like insiders are positive about OPKO Health. One for the watchlist, at least! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For instance, we've identified 2 warning signs for OPKO Health (1 makes us a bit uncomfortable) you should be aware of.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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 of direct interests only, but not derivative transactions or indirect interests.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
