Are Insiders Buying Ohio Valley Banc Corp. (NASDAQ:OVBC) Stock?

We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. 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 Ohio Valley Banc Corp. (NASDAQ:OVBC).

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 logic dictates you should pay some attention to whether insiders are buying or selling shares. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise'.

View our latest analysis for Ohio Valley Banc

Ohio Valley Banc Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Independent Director Edward Robbins for US$58k worth of shares, at about US$23.26 per share. So it's clear an insider wanted to buy, at around the current price, which is US$23.51. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the Ohio Valley Banc insiders decided to buy shares at close to current prices.

Happily, we note that in the last year insiders paid US$64k for 2.75k shares. But they sold 0.06 shares for US$1.6. In the last twelve months there was more buying than selling by Ohio Valley Banc insiders. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Does Ohio Valley Banc Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Insiders own 7.1% of Ohio Valley Banc shares, worth about US$8.0m, according to our data. Whilst better than nothing, we're not overly impressed by these holdings.

What Might The Insider Transactions At Ohio Valley Banc Tell Us?

It doesn't really mean much that no insider has traded Ohio Valley Banc shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. The transactions are fine but it'd be more encouraging if Ohio Valley Banc insiders bought more shares in the company. Along with insider transactions, I recommend checking if Ohio Valley Banc is growing revenue. This free chart of historic revenue and earnings should make that easy.

Of course Ohio Valley Banc may not be the best stock to buy. So you may wish to see this free collection of high quality 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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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. 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.
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