CEO & Chairman of Old Market Capital Picks Up 46% More Stock

Investors who take an interest in Old Market Capital Corporation (NASDAQ:OMCC) should definitely note that the CEO & Chairman, Jeffrey Royal, recently paid US$6.00 per share to buy US$189k worth of the stock. That's a very solid buy in our book, and increased their holding by a noteworthy 46%.

View our latest analysis for Old Market Capital

The Last 12 Months Of Insider Transactions At Old Market Capital

Notably, that recent purchase by Jeffrey Royal is the biggest insider purchase of Old Market Capital shares that we've seen in the last year. That means that an insider was happy to buy shares at around the current price of US$6.02. 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. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. The good news for Old Market Capital share holders is that insiders were buying at near the current price.

In the last twelve months Old Market Capital insiders were buying shares, but not selling. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are 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. Based on our data, Old Market Capital insiders have about 2.1% of the stock, worth approximately US$848k. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. I generally like to see higher levels of ownership.

So What Does This Data Suggest About Old Market Capital Insiders?

It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Old Market Capital insiders are expecting a bright future. While it's good to be aware of 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 2 warning signs for Old Market Capital you should be aware of, and 1 of these makes us a bit uncomfortable.

But note: Old Market Capital 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 of direct interests only, but not derivative transactions or indirect interests.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.