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 Oshkosh Corporation (NYSE:OSK).
What Is Insider Selling?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, such insiders must disclose their trading activities, and not trade on inside information.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Harvard University study found that ‘insider purchases earn abnormal returns of more than 6% per year.’
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The Last 12 Months Of Insider Transactions At Oshkosh
In the last twelve months, the biggest single sale by an insider was when the President, Wilson Jones, sold US$1.3m worth of shares at a price of US$79.04 per share. So we know that an insider sold shares at around the present share price of US$76.57. While we don’t usually like to see insider selling, it’s more concerning if the sales take price at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.
In total, Oshkosh insiders sold more than they bought over the last year. You can see the insider transactions (by individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
I will like Oshkosh better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Oshkosh Insiders Are Selling The Stock
Over the last three months, we’ve seen significant insider selling at Oshkosh. Specifically, R. Grennier ditched US$73k 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.
Does Oshkosh Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. I reckon it’s a good sign if insiders own a significant number of shares in the company. It appears that Oshkosh insiders own 1.1% of the company, worth about US$61m. We’ve certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The Oshkosh Insider Transactions Indicate?
An insider sold stock recently, but they haven’t been buying. And our longer term analysis of insider transactions didn’t bring confidence, either. But since Oshkosh is profitable and growing, we’re not too worried by this. Insiders own shares, but we’re still pretty cautious, given the history of sales. We’d think twice before buying! Of course, the future is what matters most. So if you are interested in Oshkosh, you should check out this free report on analyst forecasts for the company.
Of course Oshkosh may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
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