Insiders of OmniAb, Inc. (NASDAQ:OABI) are up 11% on their US$2.3m purchase after OmniAb, Inc. (NASDAQ:OABI) rose 14% last week
OmniAb, Inc. (NASDAQ:OABI) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 14% resulting in a addition to the company’s market value. As a result, their original purchase of US$2.3m worth of stock is now worth US$2.5m.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
View our latest analysis for OmniAb
OmniAb Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when President Matthew Foehr bought US$1.0m worth of shares at a price of US$3.39 per share. That implies that an insider found the current price of US$3.68 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. Happily, the OmniAb insiders decided to buy shares at close to current prices.
In the last twelve months OmniAb insiders were buying shares, but not selling. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. OmniAb insiders own about US$18m worth of shares. That equates to 4.1% 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 OmniAb Insider Transactions Indicate?
It doesn't really mean much that no insider has traded OmniAb 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 OmniAb and their transactions don't cause us concern. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing OmniAb. Case in point: We've spotted 1 warning sign for OmniAb you should be aware of.
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, 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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