Robert Peters Just Bought 12% More Shares In Optiscan Imaging Limited (ASX:OIL)

By
Simply Wall St
Published
March 18, 2022
ASX:OIL
Source: Shutterstock

Those following along with Optiscan Imaging Limited (ASX:OIL) will no doubt be intrigued by the recent purchase of shares by insider Robert Peters, who spent a stonking AU$1.4m on stock at an average price of AU$0.17. Aside from being a solid chunk in its own right, the deft move also saw their holding increase by some 12%.

Check out our latest analysis for Optiscan Imaging

The Last 12 Months Of Insider Transactions At Optiscan Imaging

In fact, the recent purchase by insider Robert Peters was not their only acquisition of Optiscan Imaging shares this year. Earlier in the year, they paid AU$0.41 per share in a AU$5.0m purchase. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$0.14). It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Robert Peters was the only individual insider to buy during the last year.

Robert Peters bought 35.11m shares over the last 12 months at an average price of AU$0.18. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume
ASX:OIL Insider Trading Volume March 18th 2022

Optiscan Imaging 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.

Insider Ownership of Optiscan Imaging

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Optiscan Imaging insiders own 29% of the company, worth about AU$25m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The Optiscan Imaging Insider Transactions Indicate?

It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Insiders likely see value in Optiscan Imaging shares, given these transactions (along with notable insider ownership of the company). 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 - Optiscan Imaging has 4 warning signs we think 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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