Trade Alert: Charles Moorman At Oracle Corporation (NYSE:ORCL), Has Just Spent US$972k Buying Shares
Those following along with Oracle Corporation (NYSE:ORCL) will no doubt be intrigued by the recent purchase of shares by insider Charles Moorman, who spent a stonking US$972k on stock at an average price of US$48.59. That purchase boosted their holding by 95%, which makes us wonder if the move was inspired by quietly confident deeply-felt optimism.
See our latest analysis for Oracle
Oracle Insider Transactions Over The Last Year
In fact, the recent purchase by Charles Moorman was the biggest purchase of Oracle shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, at around the current price, which is US$50.48. 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. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. In this case we're pleased to report that the insider bought shares at close to current prices. The only individual insider to buy over the last year was Charles Moorman.
Charles Moorman bought 30.00k shares over the last 12 months at an average price of US$47.47. The chart below shows insider transactions (by individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
Oracle is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
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. It's great to see that Oracle insiders own 36% of the company, worth about US$58b. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Does This Data Suggest About Oracle Insiders?
It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest Oracle insiders are well aligned, and quite possibly think the share price is too low. Nice! While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. In terms of investment risks, we've identified 1 warning sign with Oracle and understanding this should be part of your investment process.
Of course Oracle may not be the best stock to buy. So you may wish to see this free collection of high quality 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.
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.
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