CEO, MD & Executive Director of OFX Group John Malcolm Buys 6.3% More Shares

Investors who take an interest in OFX Group Limited (ASX:OFX) should definitely note that the CEO, MD & Executive Director, John Malcolm, recently paid AU$1.30 per share to buy AU$248k worth of the stock. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 6.3%.

Check out our latest analysis for OFX Group

The Last 12 Months Of Insider Transactions At OFX Group

In fact, the recent purchase by CEO, MD & Executive Director John Malcolm was not their only trade of OFX Group shares this year. Earlier in the year, they sold shares at a price ofAU$1.96 per share in a -AU$922k transaction. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (AU$1.34). So it may not shed much light on insider confidence at current levels.

Over the last year, we can see that insiders have bought 312.04k shares worth AU$432k. But insiders sold 470.00k shares worth AU$922k. You can see the insider transactions (by companies and 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!

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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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. OFX Group insiders own about AU$18m worth of shares. That equates to 5.6% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About OFX Group Insiders?

It is good to see recent purchasing. On the other hand the transaction history, over the last year, isn't so positive. While recent transactions indicate confidence in OFX Group, insiders don't own enough of the company to overcome our cautiousness about the longer term transactions. So they seem pretty well aligned, overall. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

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 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.