Need To Know: OceanFirst Financial Corp. (NASDAQ:OCFC) Insiders Have Been Selling Shares

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 shareholders might well want to know whether insiders have been buying or selling shares in OceanFirst Financial Corp. (NASDAQ:OCFC).

Do Insider Transactions Matter?

It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, such insiders must disclose their trading activities, and not trade on inside information.

We don't think shareholders should simply follow insider transactions. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year'.

Check out our latest analysis for OceanFirst Financial

The Last 12 Months Of Insider Transactions At OceanFirst Financial

The insider, William Moss, made the biggest insider sale in the last 12 months. That single transaction was for US$156k worth of shares at a price of US$23.48 each. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of US$17.95. So it may not tell us anything about how insiders feel about the current share price.

Happily, we note that in the last year insiders paid US$130k for 7.80k shares. But insiders sold 15.93k shares worth US$350k. Over the last year we saw more insider selling of OceanFirst Financial shares, than buying. The sellers received a price of around US$21.99, on average. Insider selling doesn't make us excited to buy. But we note that the selling, on average, was at well above the recently traded price of US$17.95. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

OceanFirst Financial Insiders Bought Stock Recently

Over the last three months, we've seen a bit of insider buying at OceanFirst Financial. Insiders shelled out US$32k for shares in that time. We like it when there are only buyers, and no sellers. However, in this case the amount invested recently is quite small.

Does OceanFirst Financial Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 2.9% of OceanFirst Financial shares, worth about US$31m. 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 Do The OceanFirst Financial 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. Still, the insider transactions at OceanFirst Financial in the last 12 months are not very heartening. But we do like the fact that insiders own a fair chunk of the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing OceanFirst Financial. Every company has risks, and we've spotted 4 warning signs for OceanFirst Financial you should know about.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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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