The Chairman of the Board of Organogenesis Holdings Inc. (NASDAQ:ORGO), Alan Ades, Just Bought 5.1% More Shares
Those following along with Organogenesis Holdings Inc. (NASDAQ:ORGO) will no doubt be intrigued by the recent purchase of shares by Alan Ades, Chairman of the Board of the company, who spent a stonking US$1.6m on stock at an average price of US$3.25. While that only increased their holding size by 5.1%, it is still a big swing by our standards.
Check out our latest analysis for Organogenesis Holdings
Organogenesis Holdings Insider Transactions Over The Last Year
In fact, the recent purchase by Alan Ades was the biggest purchase of Organogenesis Holdings shares made by an insider individual in the last twelve months, according to our records. We do like to see buying, but this purchase was made at well below the current price of US$5.08. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
While Organogenesis Holdings insiders bought shares during the last year, they didn't sell. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insider Ownership of Organogenesis Holdings
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. Organogenesis Holdings insiders own 28% of the company, currently worth about US$176m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Does This Data Suggest About Organogenesis Holdings Insiders?
The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest Organogenesis Holdings insiders are well aligned, and quite possibly think the share price is too low. Looks promising! 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 that end, you should learn about the 3 warning signs we've spotted with Organogenesis Holdings (including 1 which is potentially serious).
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.
This article by Simply Wall St is general in nature. 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.
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