Ondo InsurTech Reaches UK£36m Market Cap Benefiting Insider Stock Buying

Ondo InsurTech Plc (LON:ONDO) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 20%, resulting in a UK£6.1m rise in the company's market capitalisation, translating to a gain of 21% on their initial investment. In other words, the original UK£143.6k purchase is now worth UK£174.4k.

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.

We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.

Ondo InsurTech Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Non-Executive Director Andrew John Morrison bought UK£43k worth of shares at a price of UK£0.22 per share. Even though the purchase was made at a significantly lower price than the recent price (UK£0.27), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Over the last year, we can see that insiders have bought 657.98k shares worth UK£144k. But insiders sold 611.98k shares worth UK£134k. Overall, Ondo InsurTech insiders were net buyers during the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Check out our latest analysis for Ondo InsurTech

Ondo InsurTech is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Insiders At Ondo InsurTech Have Bought Stock Recently

There was some insider buying at Ondo InsurTech over the last quarter. In that period insiders spent UK£88k on shares. However, they netted UK£78k for sales. While it's good to see the insider buying, the net amount bought isn't enough for us to gain much confidence from it.

Insider Ownership Of Ondo InsurTech

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data indicates that Ondo InsurTech insiders own about UK£3.9m worth of shares (which is 11% of the company). We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. We do generally prefer see higher levels of insider ownership.

So What Do The Ondo InsurTech Insider Transactions Indicate?

Our data shows a little insider buying, but no selling, in the last three months. The net investment is not enough to encourage us much. But insiders have shown more of an appetite for the stock, over the last year. We'd like to see bigger individual holdings. However, we don't see anything to make us think Ondo InsurTech insiders are doubting the company. 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. To help with this, we've discovered 6 warning signs (1 is a bit unpleasant!) that you ought to be aware of before buying any shares in Ondo InsurTech.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.