Investors who take an interest in OncoCyte Corporation (NYSEMKT:OCX) should definitely note that the Independent Director, Andrew Arno, recently paid US$2.16 per share to buy US$108k worth of the stock. We reckon that’s a good sign, especially since the purchase boosted their holding by 95.3%.
OncoCyte Insider Transactions Over The Last Year
Notably, that recent purchase by Independent Director Andrew Arno was not the only time they bought OncoCyte shares this year. Earlier in the year, they paid US$2.16 per share in a US$108k purchase. That implies that an insider found the current price of US$2.20 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. While we always like to see insider buying, it’s less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. In this case we’re pleased to report that the insider purchases were made at close to current prices.
In the last twelve months OncoCyte insiders were buying shares, but not selling. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. OncoCyte insiders own about US$22m worth of shares. That equates to 19% 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 OncoCyte Tell Us?
The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. But we don’t feel the same about the fact the company is making losses. Given that insiders also own a fair bit of OncoCyte we think they are probably pretty confident of a bright future. Of course, the future is what matters most. So if you are interested in OncoCyte, you should check out this free report on analyst forecasts for the company.
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.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.