We often see insiders buying up shares in companies that perform well over the long term. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So before you buy or sell Oritani Financial Corp. (NASDAQ:ORIT), you may well want to know whether insiders have been buying or selling.
What Is Insider Buying?
It’s quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, such insiders must disclose their trading activities, and not trade on inside information.
Insider transactions are not the most important thing when it comes to long-term investing. But it is perfectly logical to keep tabs on what insiders are doing. As Peter Lynch said, ‘insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.’
The Last 12 Months Of Insider Transactions At Oritani Financial
Director Judith Schumacher-Tilton made the biggest insider purchase in the last 12 months. That single transaction was for US$73k worth of shares at a price of US$14.67 each. So it’s clear an insider wanted to buy, even at a higher price. Their view may have changed since then, but at least it shows they felt optimistic at the time. That purchase may suggest an expectation of positive returns over the long term.
Happily, we note that in the last year insiders bought 10.00k shares for a total of US$149k. In total, Oritani Financial insiders bought more than they sold over the last year. The average buy price was around US$14.85. This is nice to see since it implies that insiders might see value around current prices (around US$14.16). The chart below shows insider transactions 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!
If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).
Oritani Financial Insiders Bought Stock Recently
Over the last quarter, Oritani Financial insiders have spent a meaningful amount on shares. Overall, 2 insiders shelled out US$149k for shares in the company — and none sold. That shows some optimism about the company’s future.
Insider Ownership of Oritani Financial
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. It’s great to see that Oritani Financial insiders own 6.0% of the company, worth about US$40m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Do The Oritani Financial Insider Transactions Indicate?
It’s certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. Given that insiders also own a fair bit of Oritani Financial we think they are probably pretty confident of a bright future. Of course, the future is what matters most. So if you are interested in Oritani Financial, you should check out this free report on analyst forecasts for the company.
But note: Oritani Financial 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.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at email@example.com.