Osteopore Limited (ASX:OSX) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 18%, resulting in a AU$3.5m rise in the company's market capitalisation. As a result, the stock they originally bought for AU$2.4m is now worth AU$2.4m.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
Our analysis indicates that OSX is potentially overvalued!
The Last 12 Months Of Insider Transactions At Osteopore
In the last twelve months, the biggest single purchase by an insider was when insider Marcus Liew bought AU$1.9m worth of shares at a price of AU$0.21 per share. That means that even when the share price was higher than AU$0.20 (the recent price), an insider wanted to purchase shares. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. We note that Marcus Liew was both the biggest buyer and the biggest seller.
Happily, we note that in the last year insiders paid AU$2.4m for 12.01m shares. But insiders sold 10.14m shares worth AU$2.0m. Overall, Osteopore insiders were net buyers during the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
Osteopore is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Have Osteopore Insiders Traded Recently?
Over the last three months, we've seen a bit of insider selling at Osteopore. The selling netted AU$413k for insider Marcus Liew. But the good news is that there was purchasing too , worth AU$404k. While it's not great to see insider selling, the net amount sold isn't enough for us to want to read anything into it.
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. Osteopore insiders own about AU$12m worth of shares (which is 52% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
What Might The Insider Transactions At Osteopore Tell Us?
Insider selling has just outweighed insider buying in the last three months. But the difference isn't enough to have us worried. But insiders have shown more of an appetite for the stock, over the last year. With high insider ownership and encouraging transactions, it seems like Osteopore insiders think the business has merit. 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. Our analysis shows 5 warning signs for Osteopore (3 are concerning!) and we strongly recommend you look at them before investing.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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, but not derivative transactions.
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Find out whether Osteopore is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.View the Free Analysis
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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.
Osteopore Limited designs, develops, and markets bioresorbable polymer implants for neurosurgical, orthopedic, and maxillofacial surgery applications in Singapore, Australia, and internationally.
Adequate balance sheet with weak fundamentals.