Positive Signs As Multiple Insiders Buy Oak Valley Bancorp Stock
Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of Oak Valley Bancorp (NASDAQ:OVLY), that sends out a positive message to the company's shareholders.
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 Oak Valley Bancorp
The Last 12 Months Of Insider Transactions At Oak Valley Bancorp
Notably, that recent purchase by Independent Director H. Holder was not the only time they bought Oak Valley Bancorp shares this year. Earlier in the year, they paid US$23.03 per share in a US$115k purchase. That means that an insider was happy to buy shares at around the current price of US$24.25. 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 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 Oak Valley Bancorp insiders decided to buy shares at close to current prices.
Over the last year, we can see that insiders have bought 17.74k shares worth US$426k. But they sold 250.00 shares for US$6.6k. In total, Oak Valley Bancorp 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!
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).
Oak Valley Bancorp Insiders Bought Stock Recently
At Oak Valley Bancorp,over the last quarter, we have observed quite a lot more insider buying than insider selling. Independent Director H. Holder spent US$141k on stock. On the other hand, Independent Director Ronald Martin netted US$6.6k by selling. Insiders have spent more buying shares than they have selling, so on balance we think they are are probably optimistic.
Does Oak Valley Bancorp Boast High Insider Ownership?
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. It appears that Oak Valley Bancorp insiders own 20% of the company, worth about US$39m. 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 Oak Valley Bancorp Tell Us?
It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. Insiders likely see value in Oak Valley Bancorp shares, given these transactions (along with notable insider ownership of the company). I like to dive deeper into how a company has performed in the past. You can access this interactive graph of past earnings, revenue and cash flow for free.
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.
