CFO, Principal Financial & Accounting Officer of OrthoPediatrics Picks Up 2.4% More Stock

Even if it's not a huge purchase, we think it was good to see that Fred Hite, the CFO, Principal Financial & Accounting Officer of OrthoPediatrics Corp. (NASDAQ:KIDS) recently shelled out US$99k to buy stock, at US$19.41 per share. However, it only increased their shares held by 2.4%, and it wasn't a huge purchase by absolute value, either.

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The Last 12 Months Of Insider Transactions At OrthoPediatrics

In the last twelve months, the biggest single sale by an insider was when the President, David Bailey, sold US$165k worth of shares at a price of US$24.86 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of US$22.12. So it is hard to draw any strong conclusion from it.

In total, OrthoPediatrics insiders sold more than they bought over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

View our latest analysis for OrthoPediatrics

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Does OrthoPediatrics 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. We usually like to see fairly high levels of insider ownership. Insiders own 5.2% of OrthoPediatrics shares, worth about US$26m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The OrthoPediatrics Insider Transactions Indicate?

It is good to see the recent insider purchase. But we can't say the same for the transactions over the last 12 months. We don't take much heart from transactions by OrthoPediatrics insiders over the last year. But they own a reasonable amount of the company, and there was some buying recently. So they seem pretty well aligned, overall. 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. At Simply Wall St, we found 1 warning sign for OrthoPediatrics that deserve your attention before buying any shares.

But note: OrthoPediatrics 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.

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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.