Yahoo Finance Are Insiders Buying Ovato Limited (ASX:OVT) Stock?
We note that a Ovato Limited (ASX:OVT) insider, , recently sold worth of stock for per share. On the bright side, that's just a small sale and only reduced their holding by .
See our latest analysis for Ovato
The Last 12 Months Of Insider Transactions At Ovato
Over the last year, we can see that the biggest insider purchase was by Chief Operating Officer James Hannan for AU$1.6m worth of shares, at about AU$0.051 per share. So it's clear an insider wanted to buy, at around the current price, which is AU$0.051. Of course they may have changed their mind. But this suggests they are optimistic. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for Ovato share holders is that insiders were buying at near the current price.
Over the last year, we can see that insiders have bought 49070719 shares worth AU$2.9m. But they sold 31653644 for AU$1.6m. In total, Ovato insiders bought more than they sold over the last year. The average buy price was around AU$0.059. This is nice to see since it implies that insiders might see value around current prices. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Ovato is not the only stock insiders are buying. So take a peek 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 inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Ovato insiders own 53% of the company, worth about AU$20m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
What Might The Insider Transactions At Ovato Tell Us?
Insider sales and purchases have netted out over the last three months, so it's hard to draw any conclusion from recent trading. On a brighter note, the transactions over the last year are encouraging. Judging from their transactions, and high insider ownership, Ovato insiders feel good about the company's future. To put this in context, take a look at how a company has performed in the past. You can access this detailed graph of past earnings, revenue and cash flow.
Of course Ovato may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
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.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.
