President Of Orthofix Medical Sold 39% Of Their Shares

Anyone interested in Orthofix Medical Inc. (NASDAQ:OFIX) should probably be aware that the President, Massimo Calafiore, recently divested US$327k worth of shares in the company, at an average price of US$16.98 each. That sale was 39% of their holding, so it does make us raise an eyebrow.

View our latest analysis for Orthofix Medical

The Last 12 Months Of Insider Transactions At Orthofix Medical

Notably, that recent sale by Massimo Calafiore is the biggest insider sale of Orthofix Medical shares that we've seen in the last year. So it's clear an insider wanted to take some cash off the table, even below the current price of US$17.94. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 39% of Massimo Calafiore's stake.

In the last year Orthofix Medical insiders didn't buy any company stock. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

I will like Orthofix Medical better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Does Orthofix Medical Boast High 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. Insiders own 2.8% of Orthofix Medical shares, worth about US$19m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The Orthofix Medical Insider Transactions Indicate?

Insiders sold stock recently, but they haven't been buying. 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. Every company has risks, and we've spotted 3 warning signs for Orthofix Medical (of which 1 is a bit unpleasant!) you should know about.

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 of direct interests only, but not derivative transactions or indirect interests.

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