In spite of OFX Group Limited's recent pullback, insiders still gained about AU$59k after buying earlier this year.

Published
June 08, 2022
ASX:OFX
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Insiders who purchased OFX Group Limited (ASX:OFX) shares in the past 12 months are unlikely to be deeply impacted by the stock's 11% decline over the past week. After taking the recent loss into consideration, the AU$160k worth of stock they bought is now worth AU$219k, indicating that their investment yielded a positive return.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for OFX Group

The Last 12 Months Of Insider Transactions At OFX Group

Over the last year, we can see that the biggest insider purchase was by Non-Executive Director Catherine Kovacs for AU$100k worth of shares, at about AU$1.37 per share. We do like to see buying, but this purchase was made at well below the current price of AU$2.18. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

While OFX Group insiders bought shares during the last year, they didn't sell. 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. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume
ASX:OFX Insider Trading Volume June 8th 2022

OFX Group is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Does OFX Group Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that OFX Group insiders own 8.5% of the company, worth about AU$46m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At OFX Group Tell Us?

The fact that there have been no OFX Group insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. Overall we don't see anything to make us think OFX Group insiders are doubting the company, and they do own shares. Therefore, you should definitely take a look at this FREE report showing analyst forecasts for OFX Group.

But note: OFX Group may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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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About ASX:OFX

OFX Group

OFX Group Limited provides international payments and foreign exchange services.

The Snowflake is a visual investment summary with the score of each axis being calculated by 6 checks in 5 areas.

Analysis AreaScore (0-6)
Valuation1
Future Growth5
Past Performance6
Financial Health6
Dividends0

Read more about these checks in the individual report sections or in our analysis model.

Outstanding track record with flawless balance sheet.

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