We wouldn’t blame Omega Healthcare Investors, Inc. (NYSE:OHI) shareholders if they were a little worried about the fact that Daniel Booth, the Secretary & COO recently netted about US$1.1m selling shares at an average price of US$42.95. That’s a big dump, and it decreased their holding size by 13%, which is notable but not too bad.
The Last 12 Months Of Insider Transactions At Omega Healthcare Investors
Notably, that recent sale by Secretary & COO Daniel Booth was not the only time they sold Omega Healthcare Investors shares this year. Earlier in the year, they fetched US$36.51 per share in a -US$1.5m sale. That means that even when the share price was below the current price of US$43.71, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it’s only a weak signal. This single sale was just 18% of Daniel Booth’s stake.
Omega Healthcare Investors insiders didn’t buy any shares over the last year. 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!
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Insider Ownership of Omega Healthcare Investors
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it’s a good sign if insiders own a significant number of shares in the company. Insiders own 0.5% of Omega Healthcare Investors shares, worth about US$51m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At Omega Healthcare Investors Tell Us?
An insider hasn’t bought Omega Healthcare Investors stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn’t show any insider buying. But since Omega Healthcare Investors is profitable and growing, we’re not too worried by this. Insider ownership isn’t particularly high, so this analysis makes us cautious about the company. So we’d only buy after careful consideration. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Omega Healthcare Investors.
But note: Omega Healthcare Investors 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, but not derivative transactions.
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.
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