Whilst it may not be a huge deal, we thought it was good to see that the Odyssey Marine Exploration, Inc. (NASDAQ:OMEX) Lead Director, Mark Justh, recently bought US$58k worth of stock, for US$2.91 per share. That might not be a big purchase but it only increased their holding by 8.9%, and could be interpreted as a good sign.
The Last 12 Months Of Insider Transactions At Odyssey Marine Exploration
In fact, the recent purchase by Lead Director Mark Justh was not their only acquisition of Odyssey Marine Exploration shares this year. Earlier in the year, they paid US$5.12 per share in a US$102k purchase. That means that an insider was happy to buy shares at above the current price of US$3.00. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Mark Justh was the only individual insider to buy shares in the last twelve months.
Mark Justh bought a total of 89.52k shares over the year at an average price of US$3.97. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Odyssey Marine Exploration is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
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. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 14% of Odyssey Marine Exploration shares, worth about US$4.0m, according to our data. Whilst better than nothing, we're not overly impressed by these holdings.
So What Do The Odyssey Marine Exploration Insider Transactions Indicate?
It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Odyssey Marine Exploration stock. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 6 warning signs for Odyssey Marine Exploration you should be aware of, and 1 of these makes us a bit uncomfortable.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
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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