This Insider Has Just Sold Shares In OSI Systems

Some OSI Systems, Inc. (NASDAQ:OSIS) shareholders may be a little concerned to see that the Executive Chairman, Deepak Chopra, recently sold a substantial US$4.0m worth of stock at a price of US$198 per share. However, that sale only accounted for 5.1% of their holding, so arguably it doesn't say much about their conviction.

Check out our latest analysis for OSI Systems

OSI Systems Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Executive VP & CFO, Alan Edrick, for US$6.3m worth of shares, at about US$144 per share. That means that even when the share price was below the current price of US$207, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. This single sale was just 13% of Alan Edrick's stake.

Insiders in OSI Systems didn't buy any shares in the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Insider Ownership Of OSI Systems

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's great to see that OSI Systems insiders own 6.1% of the company, worth about US$211m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At OSI Systems Tell Us?

Insiders sold OSI Systems shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. On the plus side, OSI Systems makes money, and is growing profits. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. For example, OSI Systems has 2 warning signs (and 1 which is concerning) we think you should know about.

But note: OSI Systems 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.