It is not uncommon to see companies perform well in the years after insiders buy shares. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So shareholders might well want to know whether insiders have been buying or selling shares in Oil States International, Inc. (NYSE:OIS).
What Is Insider Buying?
It’s quite normal to see company insiders, such as board members, trading in company stock, from time to time. 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 logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Colombia 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’.
The Last 12 Months Of Insider Transactions At Oil States International
VP, Controller & Chief Accounting Officer Brian Taylor made the biggest insider sale in the last 12 months. That single transaction was for US$81k worth of shares at a price of US$34.05 each. While the sale doesn’t make us feel confident, we do note it was conducted at a price well above the current share price, which is US$16.11. So it may not shed much light on insider confidence at current levels. Brian Taylor was the only individual insider to sell over the last year.
The chart below shows insider transactions over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Oil States International is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Have Oil States International Insiders Traded Recently?
We’ve only seen a tiny insider purchase valued at US$3.3k, in the last three months. So it is hard to draw any conclusion about how insiders are feeling about the stock, from these recent trades.
Does Oil States International Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. I reckon it’s a good sign if insiders own a significant number of shares in the company. Oil States International insiders own about US$17m worth of shares (which is 1.7% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Do The Oil States International Insider Transactions Indicate?
We note a that there has been a tad more insider buying than selling, recently. But the difference isn’t much. Our analysis of Oil States International 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 Oil States International, you should check out this free report on analyst forecasts for the company.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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 email@example.com.