Possible Bearish Signals With OSB Group Insiders Disposing Stock

OSB Group Plc (LON:OSB) shareholders might have a reason to worry after multiple insiders sold their shares over the last year. When evaluating insider transactions, knowing whether insiders are buying versus if they selling is usually more beneficial, as the latter can be open to many interpretations. However, if numerous insiders are selling, shareholders should investigate more.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for OSB Group

OSB Group Insider Transactions Over The Last Year

The insider, Jens Bech, made the biggest insider sale in the last 12 months. That single transaction was for UK£289k worth of shares at a price of UK£5.26 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (UK£4.66). So it may not shed much light on insider confidence at current levels.

Over the last year, we can see that insiders have bought 33.51k shares worth UK£138k. But insiders sold 143.97k shares worth UK£725k. In total, OSB Group insiders sold more than they bought over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

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Insiders At OSB Group Have Sold Stock Recently

Over the last three months, we've seen a bit of insider selling at OSB Group. Group Chief Internal Auditor Lisa Odendaal sold just UK£36k worth of shares in that time. It's not great to see insider selling, nor the lack of recent buyers. But the amount sold isn't enough for us to put any weight on it.

Does OSB Group Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 0.6% of OSB Group shares, worth about UK£12m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At OSB Group Tell Us?

Our data shows a little more insider selling, but no insider buying, in the last three months. But the sales were small, so we're not concerned. Recent sales exacerbate our caution arising from analysis of OSB Group insider transactions. But it's good to see that insiders own shares in the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing OSB Group. Every company has risks, and we've spotted 1 warning sign for OSB Group you should know about.

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 of direct interests only, but not derivative transactions or indirect interests.

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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.