Yahoo Finance With stock up 8.2%, Insiders of Organon & Co. (NYSE:OGN) must be wishing they had bought more last year
Last week, Organon & Co. (NYSE:OGN) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 8.2% last week, resulting in a US$670m increase in the company's market worth. Put another way, the original US$101k acquisition is now worth US$104k.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
See our latest analysis for Organon
Organon Insider Transactions Over The Last Year
The Independent Director Ma. de Vera Francisco made the biggest insider purchase in the last 12 months. That single transaction was for US$101k worth of shares at a price of US$33.79 each. That implies that an insider found the current price of US$34.72 per share to be enticing. 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. Happily, the Organon insider decided to buy shares at close to current prices. The only individual insider to buy over the last year was Ma. de Vera Francisco.
You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insider Ownership of Organon
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Based on our data, Organon insiders have about 0.05% of the stock, worth approximately US$4.3m. We prefer to see high levels of insider ownership.
So What Does This Data Suggest About Organon Insiders?
The fact that there have been no Organon insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Organon stock. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Organon. For instance, we've identified 5 warning signs for Organon (3 can't be ignored) 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, 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.
