The Independent Non-Executive Director of OZ Minerals Limited (ASX:OZL), Sarah Ryan, Just Bought 240% More Shares

Investors who take an interest in OZ Minerals Limited (ASX:OZL) should definitely note that the Independent Non-Executive Director, Sarah Ryan, recently paid AU$23.86 per share to buy AU$143k worth of the stock. That certainly has us anticipating the best, especially since they thusly increased their own holding by 240%, potentially signalling some real optimism.

Check out our latest analysis for OZ Minerals

OZ Minerals Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Independent Non-Executive Director, Charles Sartain, for AU$942k worth of shares, at about AU$18.84 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of AU$24.24. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 38% of Charles Sartain's stake. Charles Sartain was the only individual insider to sell over the last year.

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!

I will like OZ Minerals better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Insider Ownership of OZ Minerals

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. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 0.5% of OZ Minerals shares, worth about AU$40m. 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 OZ Minerals Insiders?

The recent insider purchase is heartening. On the other hand the transaction history, over the last year, isn't so positive. The more recent transactions are a positive, but OZ Minerals insiders haven't shown the sustained enthusiasm that we look for, although they do own a decent number of shares, overall. Overall they seem reasonably aligned. 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. In terms of investment risks, we've identified 1 warning sign with OZ Minerals and understanding it should be part of your investment process.

Of course OZ Minerals may not be the best stock to buy. So you may wish to see this free collection of high quality 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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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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