Stock Analysis

Have Insiders Been Buying Oakley Capital Investments Limited (LON:OCI) Shares?

LSE:OCI
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It is not uncommon to see companies perform well in the years after insiders buy shares. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So shareholders might well want to know whether insiders have been buying or selling shares in Oakley Capital Investments Limited (LON:OCI).

What Is Insider Selling?

It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, most countries require that the company discloses such transactions to the market.

We don't think shareholders should simply follow insider transactions. But it is perfectly logical to keep tabs on what insiders are doing. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise'.

See our latest analysis for Oakley Capital Investments

The Last 12 Months Of Insider Transactions At Oakley Capital Investments

Over the last year, we can see that the biggest insider purchase was by Founder Peter Adam Dubens for UK£1m worth of shares, at about UK£2.05 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of UK£2.75. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Oakley Capital Investments insiders may have bought shares in the last year, but they didn't sell any. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

insider-trading-volume
LSE:OCI Insider Trading Volume December 18th 2020

Oakley Capital Investments 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.

Insiders at Oakley Capital Investments Have Bought Stock Recently

We saw some Oakley Capital Investments insider buying shares in the last three months. Independent Non-Executive Director Fiona Beck bought UK£30k worth of shares in that time. We like it when there are only buyers, and no sellers. But the amount invested in the last three months isn't enough for us too put much weight on it, as a single factor.

Does Oakley Capital Investments Boast High 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. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 11% of Oakley Capital Investments shares, worth about UK£53m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The Oakley Capital Investments Insider Transactions Indicate?

Our data shows a little insider buying, but no selling, in the last three months. That said, the purchases were not large. But insiders have shown more of an appetite for the stock, over the last year. Insiders do have a stake in Oakley Capital Investments and their transactions don't cause us concern. 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. You'd be interested to know, that we found 1 warning sign for Oakley Capital Investments and we suggest you have a look.

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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This article by Simply Wall St is general in nature. 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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About LSE:OCI

Oakley Capital Investments

Oakley Capital Investments Limited is private equity and venture capital firm specializing in investments in early, series B, growth, late stage, small and mid markets, corporate carve-outs, buyouts, restructuring, management buy-outs, management buy-ins, public to privates, re-financings, secondary purchases, growth capital, turnarounds, industry consolidation, business roll-outs and buy-and-build investments as well as investments in other funds.

Good value with acceptable track record.