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 shareholders might well want to know whether insiders have been buying or selling shares in Oil-Dri Corporation of America (NYSE:ODC).
What Is Insider Buying?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. 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 equally, we would consider it foolish to ignore insider transactions altogether. 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 Oil-Dri of America
In the last twelve months, the biggest single sale by an insider was when Chairman Daniel Jaffee sold US$124k worth of shares at a price of US$30.08 per share. That means that an insider was selling shares at around the current price of US$26.97. They could have a variety of motivations for selling, but it’s still not particularly encouraging to see. We generally tread carefully if insiders have been selling on market, even if they sold slightly above the current price. The only individual insider seller over the last year was Daniel Jaffee.
Over the last year, we can see that insiders have bought 5.96k shares worth US$200k. But they sold 4.13k for US$124k. In the last twelve months there was more buying than selling by Oil-Dri of America insiders. They paid about US$33.56 on average. I’d consider this a positive as it suggests insiders see value at around the current price, which is US$26.97. You can see a visual depiction of insider transactions over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
I will like Oil-Dri of America better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Are Oil-Dri of America Insiders Buying Or Selling?
We have seen a bit of insider selling at Oil-Dri of America, over the last three months. Daniel Jaffee sold US$124k worth of shares in that time. But US$117k was spent on buying, too, . While it’s not great to see insider selling, the net amount sold isn’t enough for us to want to read anything into it.
Does Oil-Dri of America Boast High 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. It’s great to see that Oil-Dri of America insiders own 12% of the company, worth about US$24m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
What Might The Insider Transactions At Oil-Dri of America Tell Us?
Insider selling has just outweighed insider buying in the last three months. But the difference isn’t enough to have us worried. But insiders have shown more of an appetite for the stock, over the last year. Insiders own shares in Oil-Dri of America and we see no evidence to suggest they are worried about the future. Along with insider transactions, I recommend checking if Oil-Dri of America is growing revenue. This free chart of historic revenue and earnings should make that easy.
Of course Oil-Dri of America may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
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