Independent Director of Ouster Picks Up 5.5% More Stock

Whilst it may not be a huge deal, we thought it was good to see that the Ouster, Inc. (NYSE:OUST) Independent Director, Virginia Boulet, recently bought US$78k worth of stock, for US$7.82 per share. However, it only increased their shares held by 5.5%, and it wasn't a huge purchase by absolute value, either.

See our latest analysis for Ouster

Ouster Insider Transactions Over The Last Year

In fact, the recent purchase by Independent Director Virginia Boulet was not their only acquisition of Ouster shares this year. They previously made an even bigger purchase of US$240k worth of shares at a price of US$6.20 per share. We do like to see buying, but this purchase was made at well below the current price of US$8.05. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

In the last twelve months insiders purchased 130.60k shares for US$1.0m. But insiders sold 59.58k shares worth US$447k. In total, Ouster insiders bought more than they sold over the last year. Their average price was about US$7.95. It's great to see insiders putting their own cash into the company's stock, albeit at below the recent share price. 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!

Ouster is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Insider Ownership

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Ouster insiders own 5.7% of the company, worth about US$22m. 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 Does This Data Suggest About Ouster Insiders?

Our data shows a little insider buying, but no selling, in the last three months. The net investment is not enough to encourage us much. But insiders have shown more of an appetite for the stock, over the last year. Overall we don't see anything to make us think Ouster insiders are doubting the company, and they do own shares. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To assist with this, we've discovered 3 warning signs that you should run your eye over to get a better picture of Ouster.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.