This Insider Has Just Sold Shares In Omni Bridgeway Limited (ASX:OBL)

We wouldn't blame Omni Bridgeway Limited (ASX:OBL) shareholders if they were a little worried about the fact that Hugh McLernon, the Executive Director recently netted about AU$1.9m selling shares at an average price of AU$4.03. That sale reduced their total holding by 11% which is hardly insignificant, but far from the worst we've seen.

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The Last 12 Months Of Insider Transactions At Omni Bridgeway

Notably, that recent sale by Executive Director Hugh McLernon was not the only time they sold Omni Bridgeway shares this year. Earlier in the year, they fetched AU$3.63 per share in a -AU$3.6m sale. That means that an insider was selling shares at slightly below the current price (AU$4.24). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was only 19%of Hugh McLernon's holding.

Hugh McLernon divested 1.69m shares over the last 12 months at an average price of AU$3.74. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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Insider Ownership

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Omni Bridgeway insiders own about AU$41m worth of shares. That equates to 3.7% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Omni Bridgeway Tell Us?

Unfortunately, there has been more insider selling of Omni Bridgeway stock, than buying, in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. While insiders do own shares, they don't own a heap, and they have been selling. So we'd only buy after careful consideration. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Every company has risks, and we've spotted 2 warning signs for Omni Bridgeway you should know about.

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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.
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