Are Insiders Selling OceanFirst Financial Corp. (NASDAQ:OCFC) Stock?
We’ve lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. 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 OceanFirst Financial Corp. (NASDAQ:OCFC).
Do Insider Transactions Matter?
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.
We don’t think shareholders should simply follow insider transactions. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Harvard University study found that ‘insider purchases earn abnormal returns of more than 6% per year.’
Check out our latest analysis for OceanFirst Financial
The Last 12 Months Of Insider Transactions At OceanFirst Financial
Director Michael Devlin made the biggest insider sale in the last 12 months. That single transaction was for US$1.6m worth of shares at a price of US$27.00 each. So we know that an insider sold shares at around the present share price of US$23.13. They could have a variety of motivations for selling, but it’s still not particularly encouraging to see. Arguably, insider selling at around current prices should give us reason to reflect on whether the stock is fully valued at the moment.
In the last twelve months insiders purchased 7.23k shares for US$202k. But insiders sold 82.69k shares worth US$2.2m. All up, insiders sold more shares in OceanFirst Financial than they bought, over the last year. The average sell price was around US$26.73. It’s not particularly great to see insiders were selling shares around current prices. But we don’t put too much weight on the insider selling, since sellers could have personal reasons. You can see a visual depiction of insider transactions (by 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!
OceanFirst Financial is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insiders at OceanFirst Financial Have Bought Stock Recently
Over the last three months, we’ve seen a bit of insider buying at OceanFirst Financial. Chairman Christopher Maher shelled out US$12k for shares in that time. It’s great to see that insiders are only buying, not selling. But the amount invested in the last three months isn’t enough for us too put much weight on it, as a single factor.
Does OceanFirst Financial 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. I reckon it’s a good sign if insiders own a significant number of shares in the company. It appears that OceanFirst Financial insiders own 2.9% of the company, worth about US$32m. We’ve certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Does This Data Suggest About OceanFirst Financial Insiders?
Our data shows a little more insider buying than selling in the last three months. But the difference isn’t much. Our analysis of OceanFirst Financial insider transactions leaves us cautious. But it’s good to see that insiders own shares in the company. Of course, the future is what matters most. So if you are interested in OceanFirst Financial, you should check out this free report on analyst forecasts for the company.
If you would prefer to check out another company — one with potentially superior financials — then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
