It is not uncommon to see companies perform well in the years after insiders buy shares. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So shareholders might well want to know whether insiders have been buying or selling shares in Opus Bank (NASDAQ:OPB).
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 don’t think shareholders should simply follow insider transactions. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Columbia 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’.
Opus Bank Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when Richard Sanchez sold US$850k worth of shares at a price of US$28.81 per share. Although we don’t gain confidence from insider selling, we note that this large sale was at well above current price of US$20.94. So it may not tell us anything about how insiders feel about the current share price.
We note that in the last year insiders divested 58.38k shares for a total of US$1.6m. In total, Opus Bank insiders sold more than they bought over the last year. They sold for an average price of about US$27.97. Insider selling doesn’t make us excited to buy. However, we do note that the average sale price was significantly higher than the current share price (which is US$20.94). You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
I will like Opus Bank better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Insiders at Opus Bank Have Sold Stock Recently
The last quarter saw substantial insider selling of Opus Bank shares. Specifically, insiders ditched US$161k worth of shares in that time, and we didn’t record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Opus Bank insiders own about US$39m worth of shares. That equates to 5.2% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At Opus Bank Tell Us?
Insiders sold Opus Bank shares recently, but they didn’t buy any. And even if we look to the last year, we didn’t see any purchases. Insiders own shares, but we’re still pretty cautious, given the history of sales. We’re in no rush to buy! Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Opus Bank.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.