Insiders at Olin Corporation (NYSE:OLN) may have anticipated downturn, sold US$1.7m worth of stock despite low prices

By
Simply Wall St
Published
September 08, 2021
NYSE:OLN
Source: Shutterstock

Olin Corporation's (NYSE:OLN) value has fallen 8.8% in the last week, but insiders who sold US$1.7m 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$43.68 is still below the current share price.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for Olin

The Last 12 Months Of Insider Transactions At Olin

Over the last year, we can see that the biggest insider sale was by the Independent Director, Gray Benoist, for US$1.1m worth of shares, at about US$42.87 per share. That means that even when the share price was below the current price of US$47.44, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. This single sale was 68% of Gray Benoist's stake.

In the last year Olin insiders didn't buy any company stock. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume
NYSE:OLN Insider Trading Volume September 9th 2021

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Insider Ownership of Olin

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 0.6% of Olin shares, worth about US$49m. 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 Does This Data Suggest About Olin Insiders?

There haven't been any insider transactions in the last three months -- that doesn't mean much. Our analysis of Olin insider transactions leaves us cautious. But we do like the fact that insiders own a fair chunk of the company. 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. At Simply Wall St, we've found that Olin has 2 warning signs (1 is a bit concerning!) that deserve your attention before going any further with your analysis.

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, but not derivative transactions.

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