Have Ondo InsurTech Insiders Been Selling Stock?

Anyone interested in Ondo InsurTech Plc (LON:ONDO) should probably be aware that the Non-Executive Director, Andrew John Morrison, recently divested UK£180k worth of shares in the company, at an average price of UK£0.30 each. That sale was 17% of their holding, so it does make us raise an eyebrow.

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The Last 12 Months Of Insider Transactions At Ondo InsurTech

In fact, the recent sale by Andrew John Morrison was the biggest sale of Ondo InsurTech shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to take some cash off the table, even below the current price of UK£0.32. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. We note that the biggest single sale was only 17%of Andrew John Morrison's holding.

Over the last year, we can see that insiders have bought 566.67k shares worth UK£34k. On the other hand they divested 600.00k shares, for UK£180k. 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!

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Insider Ownership Of Ondo InsurTech

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Insiders own 27% of Ondo InsurTech shares, worth about UK£6.7m. 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 Ondo InsurTech Insiders?

An insider sold Ondo InsurTech shares recently, but they didn't buy any. Zooming out, the longer term picture doesn't give us much comfort. While insiders do own shares, they don't own a heap, and they have been selling. So we'd only buy after careful consideration. 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. At Simply Wall St, we've found that Ondo InsurTech has 6 warning signs (2 can't be ignored!) that deserve your attention before going any further with your analysis.

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. 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.