Insider Spends US$94k Buying More Shares In OmniAb

Even if it's not a huge purchase, we think it was good to see that John Higgins, the Chairman of OmniAb, Inc. (NASDAQ:OABI) recently shelled out US$94k to buy stock, at US$1.44 per share. Although the purchase is not a big one, increasing their shareholding by only 3.0%, it can be interpreted as a good sign.

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The Last 12 Months Of Insider Transactions At OmniAb

In the last twelve months, the biggest single purchase by an insider was when President Matthew Foehr bought US$1.1m worth of shares at a price of US$4.42 per share. That means that an insider was happy to buy shares at above the current price of US$1.58. It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels. We note that Matthew Foehr was both the biggest buyer and the biggest seller.

Happily, we note that in the last year insiders paid US$1.5m for 489.75k shares. On the other hand they divested 82.83k shares, for US$268k. In the last twelve months there was more buying than selling by OmniAb insiders. The average buy price was around US$3.14. This is nice to see since it implies that insiders might see value around current prices. 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!

See our latest analysis for OmniAb

OmniAb 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 OmniAb Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. From our data, it seems that OmniAb insiders own 5.1% of the company, worth about US$9.9m. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

So What Does This Data Suggest About OmniAb Insiders?

It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that OmniAb insiders are reasonably well aligned, and optimistic for the future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To help with this, we've discovered 2 warning signs (1 is potentially serious!) that you ought to be aware of before buying any shares in OmniAb.

But note: OmniAb 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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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.