OptimizeRx Falls To US$13.56, But Insiders Sold At Lower Price

OptimizeRx Corporation's (NASDAQ:OPRX) value has fallen 12% in the last week, but insiders who sold US$61k worth of stock over the last year have had less success. Insiders might have been better off holding onto their shares, given that the average selling price of US$15.19 is still below the current share price.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for OptimizeRx

The Last 12 Months Of Insider Transactions At OptimizeRx

Over the last year, we can see that the biggest insider sale was by the General Counsel & Chief Compliance Officer, Marion Odence-Ford, for US$61k worth of shares, at about US$15.19 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 silver lining is that this sell-down took place above the latest price (US$13.56). So it is hard to draw any strong conclusion from it. Marion Odence-Ford was the only individual insider to sell over the last year.

The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

I will like OptimizeRx better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

OptimizeRx Insiders Are Selling The Stock

The last three months saw significant insider selling at OptimizeRx. Specifically, General Counsel & Chief Compliance Officer Marion Odence-Ford ditched US$61k worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.

Does OptimizeRx Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. OptimizeRx insiders own about US$34m worth of shares. That equates to 12% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At OptimizeRx Tell Us?

An insider hasn't bought OptimizeRx stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. Insiders own shares, but we're still pretty cautious, given the history of sales. We'd practice some caution before buying! While we like knowing 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. You'd be interested to know, that we found 3 warning signs for OptimizeRx and we suggest you have a look.

But note: OptimizeRx 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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