Ondo InsurTech Insider Confidence Rewarded, Stock Hits UK£47m Market Cap

Insiders who bought Ondo InsurTech Plc (LON:ONDO) stock in the last 12 months were richly rewarded last week. The company's market value increased by UK£4.9m as a result of the stock's 12% gain over the same period. As a result, their original purchase of UK£123.6k worth of stock is now worth UK£174.2k.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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Ondo InsurTech Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when insider Andrew John Morrison bought UK£43k worth of shares at a price of UK£0.22 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of UK£0.34. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

In the last twelve months insiders purchased 520.05k shares for UK£124k. But insiders sold 474.05k shares worth UK£114k. Overall, Ondo InsurTech insiders were net buyers during the last year. They paid about UK£0.24 on average. It is certainly positive to see that insiders have invested their own money in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. 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!

See our latest analysis for Ondo InsurTech

Ondo InsurTech is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 6.8% of Ondo InsurTech shares, worth about UK£3.2m, according to our data. But they may have an indirect interest through a corporate structure that we haven't picked up on. Whilst better than nothing, we're not overly impressed by these holdings.

What Might The Insider Transactions At Ondo InsurTech Tell Us?

The fact that there have been no Ondo InsurTech insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Ondo InsurTech stock. While it's good to be aware of 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. For instance, we've identified 5 warning signs for Ondo InsurTech (2 are a bit concerning) you should be aware of.

But note: Ondo InsurTech may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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 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.