This Insider Has Just Sold Shares In Ocean Bio-Chem, Inc. (NASDAQ:OBCI)

We'd be surprised if Ocean Bio-Chem, Inc. (NASDAQ:OBCI) shareholders haven't noticed that the Executive VP of Sales & Marketing & Director, Gregor Dornau, recently sold US$120k worth of stock at US$14.07 per share. On the bright side, that sale was only 1.8% of their holding, so we doubt it's very meaningful, on its own.

Check out our latest analysis for Ocean Bio-Chem

Ocean Bio-Chem Insider Transactions Over The Last Year

Notably, that recent sale by Gregor Dornau is the biggest insider sale of Ocean Bio-Chem shares that we've seen in the last year. So what is clear is that an insider saw fit to sell at around the current price of US$13.36. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

Ocean Bio-Chem insiders didn't buy any shares 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!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Does Ocean Bio-Chem Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Ocean Bio-Chem insiders own 62% of the company, currently worth about US$82m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Ocean Bio-Chem Tell Us?

Insiders sold Ocean Bio-Chem shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. But it is good to see that Ocean Bio-Chem is growing earnings. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. You'd be interested to know, that we found 2 warning signs for Ocean Bio-Chem and we suggest you have a look.

Of course Ocean Bio-Chem may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

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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