Insiders who bought into Oil States International, Inc. (NYSE:OIS) earlier this year might wish they'd invested more as stock gained 13%
Oil States International, Inc. (NYSE:OIS) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 13%, resulting in a US$64m rise in the company's market capitalisation. As a result, their original purchase of US$213k worth of stock is now worth US$520k.
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.
Check out our latest analysis for Oil States International
The Last 12 Months Of Insider Transactions At Oil States International
The Executive VP & COO Philip Moses made the biggest insider purchase in the last 12 months. That single transaction was for US$213k worth of shares at a price of US$3.63 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$8.87. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
Oil States International 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 Of Oil States International
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Oil States International insiders own about US$27m worth of shares. That equates to 4.7% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Do The Oil States International Insider Transactions Indicate?
The fact that there have been no Oil States International insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. Overall we don't see anything to make us think Oil States International insiders are doubting the company, and they do own shares. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Oil States International. In terms of investment risks, we've identified 1 warning sign with Oil States International and understanding it should be part of your investment process.
But note: Oil States International 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, but not derivative transactions.
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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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