Trade Alert: Independent Director Of OSI Systems Meyer Luskin Has Sold Stock

We wouldn't blame OSI Systems, Inc. (NASDAQ:OSIS) shareholders if they were a little worried about the fact that Meyer Luskin, the Independent Director recently netted about US$1.6m selling shares at an average price of US$133. That's a big disposal, and it decreased their holding size by 36%, which is notable but not too bad.

See our latest analysis for OSI Systems

OSI Systems Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Executive VP & CFO, Alan Edrick, sold US$5.0m worth of shares at a price of US$126 per share. That means that an insider was selling shares at slightly below the current price (US$136). 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. 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. We note that the biggest single sale was only 11% of Alan Edrick's holding.

In the last year OSI Systems insiders didn't buy any company stock. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

I will like OSI Systems better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that OSI Systems insiders own 6.9% of the company, worth about US$153m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The OSI Systems Insider Transactions Indicate?

Insiders sold OSI Systems shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. On the plus side, OSI Systems makes money, and is growing profits. It is good to see high insider ownership, but the insider selling leaves us cautious. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing OSI Systems. Be aware that OSI Systems is showing 2 warning signs in our investment analysis, and 1 of those can't be ignored...

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.