Insider Spends US$127k Buying More Shares In Oncology Institute
Investors who take an interest in The Oncology Institute, Inc. (NASDAQ:TOI) should definitely note that the Chief Financial Officer & Principal Accounting Officer, Mihir Shah, recently paid US$1.27 per share to buy US$127k worth of the stock. We reckon that's a good sign, especially since the purchase boosted their holding by 720%.
View our latest analysis for Oncology Institute
Oncology Institute Insider Transactions Over The Last Year
In fact, the recent purchase by Mihir Shah was the biggest purchase of Oncology Institute shares made by an insider individual in the last twelve months, according to our records. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$1.62. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
Oncology Institute insiders may have bought shares in the last year, but they didn't sell any. They paid about US$1.03 on average. It is certainly positive to see that insiders have invested their own money in the company. But we must note that the investments were made at well below today's share price. 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.
Does Oncology Institute 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. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 19% of Oncology Institute shares, worth about US$23m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At Oncology Institute Tell Us?
It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest Oncology Institute insiders are well aligned, and that they may think the share price is too low. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Oncology Institute. While conducting our analysis, we found that Oncology Institute has 2 warning signs and it would be unwise to ignore these.
But note: Oncology Institute 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.
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.
