Insider Buyers Lose Additional AU$86k As Oliver's Real Food Dips To AU$3.8m

Insiders who acquired AU$160.2k worth of Oliver's Real Food Limited's (ASX:OLI) stock at an average price of AU$0.015 in the past 12 months may be dismayed by the recent 13% price decline. Insiders purchase with the hope of seeing their investments increase in value over time. However, due to recent losses, their initial investment is now only worth AU$74.2k, which is not great.

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.

View our latest analysis for Oliver's Real Food

The Last 12 Months Of Insider Transactions At Oliver's Real Food

Over the last year, we can see that the biggest insider sale was by the insider, Jason Gunn, for AU$126k worth of shares, at about AU$0.022 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (AU$0.007). So it may not tell us anything about how insiders feel about the current share price. Jason Gunn was the only individual insider to sell over the last year.

Happily, we note that in the last year insiders paid AU$160k for 10.60m shares. On the other hand they divested 7.60m shares, for AU$126k. Overall, Oliver's Real Food insiders were net buyers during the last year. Their average price was about AU$0.015. I'd consider this a positive as it suggests insiders see value at around the current price. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Insider Ownership Of Oliver's Real Food

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Oliver's Real Food insiders own 53% of the company, worth about AU$2.0m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Oliver's Real Food Tell Us?

There haven't been any insider transactions in the last three months -- that doesn't mean much. However, our analysis of transactions over the last year is heartening. With high insider ownership and encouraging transactions, it seems like Oliver's Real Food insiders think the business has merit. 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. For example, Oliver's Real Food has 5 warning signs (and 3 which are significant) we think you should know about.

Of course Oliver's Real Food 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 of direct interests only, but not derivative transactions or indirect interests.

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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.