Independent Non-Executive Board Chair of ODP Wendy Schoppert Buys More Stock

Even if it's not a huge purchase, we think it was good to see that Wendy Schoppert, the Independent Non-Executive Board Chair of The ODP Corporation (NASDAQ:ODP) recently shelled out US$100k to buy stock, at US$25.77 per share. Nevertheless, it only increased their shareholding by a minuscule percentage, and it wasn't a massive purchase by absolute value, either.

See our latest analysis for ODP

ODP Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Executive VP & CFO, Diego Scaglione, for US$1.4m worth of shares, at about US$55.00 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (US$26.33). So it is hard to draw any strong conclusion from it. Diego Scaglione was the only individual insider to sell over the last year.

The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.

Insider Ownership Of ODP

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. It appears that ODP insiders own 3.2% of the company, worth about US$27m. 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 Do The ODP Insider Transactions Indicate?

It is good to see the recent insider purchase. On the other hand the transaction history, over the last year, isn't so positive. We don't take much heart from transactions by ODP insiders over the last year. But they own a reasonable amount of the company, and there was some buying recently. Overall they seem reasonably aligned. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing ODP. You'd be interested to know, that we found 3 warning signs for ODP and we suggest you have a look.

Of course ODP 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 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.