Odyssey Marine Exploration, Inc. (NASDAQ:OMEX) insiders made a handsome profit after selling stock presently valued at US$5.84 apiece for US$6.90

Simply Wall St
January 16, 2022
Source: Shutterstock

Last week, Odyssey Marine Exploration, Inc.'s (NASDAQ:OMEX) stock jumped 11%, but insiders who sold US$358k worth of stock in over the past year are likely to be in a better position. Selling at an average price of US$6.90, which is higher than the current price might have been the right call as holding on to stock would have meant their investment would be worth less now than it was at the time of sale.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Odyssey Marine Exploration

The Last 12 Months Of Insider Transactions At Odyssey Marine Exploration

Over the last year, we can see that the biggest insider sale was by the Independent Lead Director, Mark Justh, for US$358k worth of shares, at about US$6.90 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of US$5.84. So it may not shed much light on insider confidence at current levels. The only individual insider seller over the last year was Mark Justh. Notably Mark Justh was also the biggest buyer, having purchased US$67k worth of shares.

In the last twelve months insiders purchased 11.25k shares for US$67k. But insiders sold 51.87k shares worth US$358k. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

NasdaqCM:OMEX Insider Trading Volume January 16th 2022

I will like Odyssey Marine Exploration better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Our data indicates that Odyssey Marine Exploration insiders own about US$8.3m worth of shares (which is 9.9% of the company). We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. Whilst better than nothing, we're not overly impressed by these holdings.

What Might The Insider Transactions At Odyssey Marine Exploration Tell Us?

The fact that there have been no Odyssey Marine Exploration insider transactions recently certainly doesn't bother us. We don't take much encouragement from the transactions by Odyssey Marine Exploration insiders. And we're not picking up on high enough insider ownership to give us any comfort. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Case in point: We've spotted 6 warning signs for Odyssey Marine Exploration you should be aware of, and 4 of these can't be ignored.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.

Discounted cash flow calculation for every stock

Simply Wall St does a detailed discounted cash flow calculation every 6 hours for every stock on the market, so if you want to find the intrinsic value of any company just search here. It’s FREE.

Make Confident Investment Decisions

Simply Wall St's Editorial Team provides unbiased, factual reporting on global stocks using in-depth fundamental analysis.
Find out more about our editorial guidelines and team.