Stock Analysis

Insiders who purchased this year lose UK£208k as OKYO Pharma Limited (LON:OKYO) stock drops to UK£0.025

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Insiders who bought UK£353k worth of OKYO Pharma Limited's (LON:OKYO) stock at an average buy price of UK£0.061 over the last year may be disappointed by the recent 11% decrease in the stock. Insiders invest with the hopes of seeing their money grow in value over time. However, as a result of recent losses, their initial investment is now only worth UK£145k, which is not what they expected.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for OKYO Pharma

OKYO Pharma Insider Transactions Over The Last Year

The Non-Executive Chairman Gabriele Marco Cerrone made the biggest insider purchase in the last 12 months. That single transaction was for UK£353k worth of shares at a price of UK£0.061 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being UK£0.025). Their view may have changed since then, but at least it shows they felt optimistic at the time. 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. The only individual insider to buy over the last year was Gabriele Marco Cerrone.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

LSE:OKYO Insider Trading Volume March 16th 2023

OKYO Pharma is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership Of OKYO Pharma

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. OKYO Pharma insiders own about UK£14m worth of shares. That equates to 33% of the company. 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 Does This Data Suggest About OKYO Pharma Insiders?

It doesn't really mean much that no insider has traded OKYO Pharma shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. Insiders do have a stake in OKYO Pharma and their transactions don't cause us concern. 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, OKYO Pharma has 6 warning signs (and 4 which shouldn't be ignored) we think you should know about.

Of course OKYO Pharma 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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