Stock Analysis

Have Bank OZK (NASDAQ:OZK) Insiders Been Selling Their Stock?

NasdaqGS:OZK
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We'd be surprised if Bank OZK (NASDAQ:OZK) shareholders haven't noticed that the Executive VP and Director of Regulatory & Government Relations, Dennis James, recently sold US$120k worth of stock at US$29.81 per share. On the bright side, that sale was only 7.0% of their holding, so we doubt it's very meaningful, on its own.

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Bank OZK Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Independent Director Ross Whipple bought US$427k worth of shares at a price of US$19.48 per share. We do like to see buying, but this purchase was made at well below the current price of US$29.20. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Happily, we note that in the last year insiders paid US$757k for 36.93k shares. But insiders sold 21.98k shares worth US$590k. In the last twelve months there was more buying than selling by Bank OZK insiders. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume
NasdaqGS:OZK Insider Trading Volume December 4th 2020

Bank OZK is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Bank OZK insiders own 6.1% of the company, currently worth about US$230m based on the recent share price. 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 Bank OZK Insiders?

Insiders haven't bought Bank OZK stock in the last three months, but there was some selling. On the other hand, the insider transactions over the last year are encouraging. And insider ownership remains quite considerable. So the recent selling doesn't worry us. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Bank OZK. In terms of investment risks, we've identified 2 warning signs with Bank OZK and understanding these should be part of your investment process.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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, 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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