Overstock.com Stock Down 17% But Insiders Still In US$37k Profit
Insiders who bought Overstock.com, Inc. (NASDAQ:OSTK) stock lover the last 12 months are probably not as affected by last week’s 17% loss. After taking the recent loss into consideration, the US$331k worth of stock they bought is now worth US$368k, indicating that their investment yielded a positive return.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
Check out our latest analysis for Overstock.com
The Last 12 Months Of Insider Transactions At Overstock.com
Over the last year, we can see that the biggest insider purchase was by Independent Director Joseph Tabacco for US$239k worth of shares, at about US$23.93 per share. That means that an insider was happy to buy shares at around the current price of US$26.30. Of course they may have changed their mind. But this suggests they are optimistic. 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. The good news for Overstock.com share holders is that insiders were buying at near the current price.
In the last twelve months insiders purchased 14.00k shares for US$331k. But insiders sold 4.50k shares worth US$125k. In total, Overstock.com insiders bought more than they sold over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Overstock.com is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Overstock.com Insiders Are Selling The Stock
The last quarter saw substantial insider selling of Overstock.com shares. In total, Chief Technology Officer Joel Weight dumped US$91k worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.
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. Insiders own 1.3% of Overstock.com shares, worth about US$16m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About Overstock.com Insiders?
An insider hasn't bought Overstock.com stock in the last three months, but there was some selling. On the other hand, the insider transactions over the last year are encouraging. We like that insiders own a fair amount of the company. So the recent selling doesn't worry us too much. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Overstock.com. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of Overstock.com.
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.
