Favourable Signals For Omni Bridgeway: Numerous Insiders Acquired Stock

When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Omni Bridgeway Limited's (ASX:OBL) instance, it's good news for shareholders.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for Omni Bridgeway

The Last 12 Months Of Insider Transactions At Omni Bridgeway

Over the last year, we can see that the biggest insider purchase was by Independent Non-Executive Chairman Michael Graham Kay for AU$203k worth of shares, at about AU$1.60 per share. That means that an insider was happy to buy shares at around the current price of AU$1.66. Of course they may have changed their mind. But this suggests they are optimistic. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. In this case we're pleased to report that the insider purchases were made at close to current prices.

Omni Bridgeway insiders may have bought shares in the last year, but they didn't sell any. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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insider-trading-volume

Omni Bridgeway is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data indicates that Omni Bridgeway insiders own about AU$12m worth of shares (which is 2.6% of the company). We do generally prefer see higher levels of insider ownership.

So What Does This Data Suggest About Omni Bridgeway Insiders?

It doesn't really mean much that no insider has traded Omni Bridgeway shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. Insiders do have a stake in Omni Bridgeway and their transactions don't cause us concern. 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. In terms of investment risks, we've identified 1 warning sign with Omni Bridgeway and understanding this should be part of your investment process.

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.

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