Even if it's not a huge purchase, we think it was good to see that J. Sanner, the Independent Director of OGE Energy Corp. (NYSE:OGE) recently shelled out US$59k to buy stock, at US$29.75 per share. Even though that isn't a massive buy, it did increase their holding by 67%, which is arguably a good sign.
OGE Energy Insider Transactions Over The Last Year
The VP of Governance & Corporate Secretary, Patricia Horn, made the biggest insider sale in the last 12 months. That single transaction was for US$803k worth of shares at a price of US$34.31 each. So we know that an insider sold shares at around the present share price of US$30.09. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.
Over the last year, we can see that insiders have bought 6.01k shares worth US$191k. But they sold 44.70k shares for US$1.5m. All up, insiders sold more shares in OGE Energy than they bought, over the last year. 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!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Does OGE Energy Boast High 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. 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 OGE Energy insiders own 0.4% of the company, worth about US$27m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At OGE Energy Tell Us?
It's certainly positive to see the recent insider purchase. However, the longer term transactions are not so encouraging. While recent transactions indicate confidence in OGE Energy, insiders don't own enough of the company to overcome our cautiousness about the longer term transactions. In short they are likely aligned with shareholders. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Our analysis shows 2 warning signs for OGE Energy (1 makes us a bit uncomfortable!) and we strongly recommend you look at these before investing.
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, but not derivative transactions.
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