Have Oceaneering International, Inc. (NYSE:OII) Insiders Been Selling Their Stock?

By
Simply Wall St
Published
May 14, 2021
NYSE:OII
Source: Shutterstock

We'd be surprised if Oceaneering International, Inc. (NYSE:OII) shareholders haven't noticed that the Director, M. McEvoy, recently sold US$453k worth of stock at US$15.10 per share. That sale was 19% of their holding, so it does make us raise an eyebrow.

See our latest analysis for Oceaneering International

Oceaneering International Insider Transactions Over The Last Year

In fact, the recent sale by Director M. McEvoy was not their only sale of Oceaneering International shares this year. Earlier in the year, they fetched US$14.50 per share in a -US$994k sale. So it's clear an insider wanted to take some cash off the table, even below the current price of US$15.02. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 30%of M. McEvoy's holding.

Insiders in Oceaneering International didn't buy any shares in the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume
NYSE:OII Insider Trading Volume May 15th 2021

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

Does Oceaneering International Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Oceaneering International insiders own 1.3% of the company, worth about US$20m. 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 Does This Data Suggest About Oceaneering International Insiders?

An insider sold Oceaneering International shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. While insiders do own shares, they don't own a heap, and they have been selling. So we'd only buy after careful consideration. 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. At Simply Wall St, we found 3 warning signs for Oceaneering International that deserve your attention before buying any shares.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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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