We often see insiders buying up shares in companies that perform well over the long term. On the other hand, we’d be remiss not to mention that insider sales have been known to precede tough periods for a business. So we’ll take a look at whether insiders have been buying or selling shares in OPG Power Ventures Plc (LON:OPG).
What Is Insider Selling?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, most countries require that the company discloses such transactions to the market.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Colombia University study found that ‘insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers’.
View our latest analysis for OPG Power Ventures
The Last 12 Months Of Insider Transactions At OPG Power Ventures
In the last twelve months, the biggest single purchase by an insider was when CFO & Executive Director Dmitri Tsvetkov bought UK£97k worth of shares at a price of UK£0.099 per share. We do like to see buying, but this purchase was at a lower price. It may not shed much light on insider confidence at the current share price.
Happily, we note that in the last year insiders bought 1.92m shares for a total of UK£221k. Overall, OPG Power Ventures insiders were net buyers last year. They paid about UK£0.11 on average. To my mind it is good 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. You can see a visual depiction of insider transactions over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
OPG Power Ventures is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insiders at OPG Power Ventures Have Bought Stock Recently
Over the last three months, we’ve seen significant insider buying at OPG Power Ventures. In total, insiders bought UK£157k worth of shares in that time, and we didn’t record any sales whatsoever. This is a positive in our book as it implies some confidence.
Insider Ownership of OPG Power Ventures
Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. OPG Power Ventures insiders own about UK£4.0m worth of shares (which is 4.4% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Does This Data Suggest About OPG Power Ventures Insiders?
The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that OPG Power Ventures insiders are expecting a bright future. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for OPG Power Ventures.
Of course OPG Power Ventures may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.