This Insider Has Just Sold Shares In Omega Flex, Inc. (NASDAQ:OFLX)

Some Omega Flex, Inc. (NASDAQ:OFLX) shareholders may be a little concerned to see that the CEO & Chairman, Kevin Hoben, recently sold a substantial US$3.8m worth of stock at a price of US$151 per share. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 2.5%.

Check out our latest analysis for Omega Flex

Omega Flex Insider Transactions Over The Last Year

In fact, the recent sale by Kevin Hoben was the biggest sale of Omega Flex shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at slightly below the current price (US$157). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. It is worth noting that this sale was only 2.5% of Kevin Hoben's holding.

Omega Flex insiders didn't buy any shares over the last year. 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 are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Insider Ownership of Omega Flex

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Omega Flex insiders own 45% of the company, currently worth about US$714m 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 Do The Omega Flex Insider Transactions Indicate?

Insiders sold Omega Flex shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. On the plus side, Omega Flex makes money, and is growing profits. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Case in point: We've spotted 1 warning sign for Omega Flex you should be aware of.

But note: Omega Flex may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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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