Insiders probably made the right decision selling US$3.0m worth of shares earlier this year as Oppenheimer Holdings Inc.'s (NYSE:OPY)) stock dips by 9.4%.

By
Simply Wall St
Published
January 19, 2022
NYSE:OPY
Source: Shutterstock

Over the past year, insiders sold US$3.0m worth of Oppenheimer Holdings Inc. (NYSE:OPY) stock at an average price of US$49.81 per share allowing them to get the most out of their money. The company's market valuation decreased by US$58m after the stock price dropped 9.4% over the past week, but insiders were spared from painful losses.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for Oppenheimer Holdings

The Last 12 Months Of Insider Transactions At Oppenheimer Holdings

Over the last year, we can see that the biggest insider sale was by the Executive VP & CFO, Jeffrey Alfano, for US$1.7m worth of shares, at about US$49.64 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of US$44.83. So it may not shed much light on insider confidence at current levels.

In the last year Oppenheimer Holdings insiders didn't buy any company stock. 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!

insider-trading-volume
NYSE:OPY Insider Trading Volume January 19th 2022

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Insiders at Oppenheimer Holdings Have Sold Stock Recently

Over the last three months, we've seen significant insider selling at Oppenheimer Holdings. Specifically, Independent Director A. Oughtred ditched US$261k worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain.

Insider Ownership of Oppenheimer Holdings

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Oppenheimer Holdings insiders own 32% of the company, currently worth about US$178m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Oppenheimer Holdings Tell Us?

An insider sold Oppenheimer Holdings 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, Oppenheimer Holdings makes money, and is growing profits. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Oppenheimer Holdings. You'd be interested to know, that we found 1 warning sign for Oppenheimer Holdings and we suggest you have a look.

But note: Oppenheimer Holdings 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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