Insider Buying: OPKO Health Chairman & CEO Bought US$213k Of Shares

Potential OPKO Health, Inc. (NASDAQ:OPK) shareholders may wish to note that the Chairman & CEO, Phillip Frost, recently bought US$213k worth of stock, paying US$1.42 for each share. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.

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OPKO Health Insider Transactions Over The Last Year

In fact, the recent purchase by Chairman & CEO Phillip Frost was not their only acquisition of OPKO Health shares this year. Earlier in the year, they paid US$1.32 per share in a US$891k purchase. That means that an insider was happy to buy shares at around the current price of US$1.40. 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. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. In this case we're pleased to report that the insider bought shares at close to current prices. Phillip Frost was the only individual insider to buy shares in the last twelve months.

Phillip Frost purchased 3.59m shares over the year. The average price per share was US$1.50. 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!

See our latest analysis for OPKO Health

OPKO Health is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Does OPKO Health Boast High Insider Ownership?

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. A high insider ownership often makes company leadership more mindful of shareholder interests. OPKO Health insiders own about US$184m worth of shares (which is 18% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About OPKO Health Insiders?

It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about OPKO Health. One for the watchlist, at least! 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. For example - OPKO Health has 1 warning sign we think you should be aware of.

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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.