Yahoo Finance Multiple insiders bought OFX Group Limited (ASX:OFX) stock earlier this year, a positive sign for shareholders
It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in OFX Group Limited's (ASX:OFX) case, it's fantastic news for shareholders.
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 OFX Group
The Last 12 Months Of Insider Transactions At OFX Group
In the last twelve months, the biggest single purchase by an insider was when Non-Executive Director Catherine Kovacs bought AU$100k worth of shares at a price of AU$1.37 per share. Even though the purchase was made at a significantly lower price than the recent price (AU$2.45), we still think insider buying is a positive. 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.
In the last twelve months OFX Group insiders were buying shares, but not selling. The average buy price was around AU$1.60. We don't deny that it is nice to see insiders buying stock in the company. But we must note that the investments were made at well below today's share price. 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!
OFX Group is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does OFX Group Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Insiders own 8.5% of OFX Group shares, worth about AU$52m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The OFX Group Insider Transactions Indicate?
It doesn't really mean much that no insider has traded OFX Group shares in the last quarter. However, our analysis of transactions over the last year is heartening. Insiders own shares in OFX Group and we see no evidence to suggest they are worried about the future. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. At Simply Wall St, we found 1 warning sign for OFX Group that deserve your attention before buying any shares.
Of course OFX Group 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.
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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.
