Overstock.com, Inc. (NASDAQ:OSTK) insiders recover some losses but still US$69k away from matching original investment

Insiders who bought US$360k worth of Overstock.com, Inc. (NASDAQ:OSTK) stock in the last year recovered part of their losses as the stock rose by 7.5% last week. However, the purchase is proving to be a costly gamble, since losses made by insiders have totalled US$69k since the time of purchase.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for Overstock.com

Overstock.com Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Non-Employee Independent Director Joseph Tabacco bought US$239k worth of shares at a price of US$23.93 per share. That means that even when the share price was higher than US$19.41 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

Over the last year, we can see that insiders have bought 15.00k shares worth US$360k. But insiders sold 2.00k shares worth US$59k. In the last twelve months there was more buying than selling by Overstock.com insiders. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart 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).

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Overstock.com insiders own 1.3% of the company, worth about US$12m. 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 Overstock.com Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Overstock.com shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. Insiders do have a stake in Overstock.com and their transactions don't cause us concern. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we found 2 warning signs for Overstock.com that deserve your attention before buying any shares.

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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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.