How Much Are OceanFirst Financial Corp. (NASDAQ:OCFC) Insiders Spending On Buying Shares?
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We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So we'll take a look at whether insiders have been buying or selling shares in OceanFirst Financial Corp. (NASDAQ:OCFC).
What Is Insider Buying?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, most countries require that the company discloses such transactions to the market.
Insider transactions are not the most important thing when it comes to long-term investing. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.
Check out our latest analysis for OceanFirst Financial
The Last 12 Months Of Insider Transactions At OceanFirst Financial
Over the last year, we can see that the biggest insider purchase was by John Lloyd for US$125k worth of shares, at about US$25.07 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$24.20). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
In the last twelve months insiders purchased 10225 shares for US$274k. On the other hand they divested 7975 shares, for US$200k. In the last twelve months there was more buying than selling by OceanFirst Financial insiders. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
OceanFirst Financial 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.
OceanFirst Financial Insiders Are Selling The Stock
We have seen a bit of insider selling at OceanFirst Financial, over the last three months. Director Samuel Young sold just US$20k worth of shares in that time. It's not great to see insider selling, nor the lack of recent buyers. But the volume sold is so low that it really doesn't bother us.
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 2.3% of OceanFirst Financial shares, worth about US$28m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At OceanFirst Financial Tell Us?
We did not see any insider buying in the last three months, but we did see selling. But given the selling was modest, we're not worried. However, our analysis of transactions over the last year is heartening. Insiders do have a stake in OceanFirst Financial and their transactions don't cause us concern. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for OceanFirst Financial.
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.
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If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.