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We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. 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 OncoSil Medical Limited (ASX:OSL).
Do Insider Transactions Matter?
It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, such insiders must disclose their trading activities, and not trade on inside information.
Insider transactions are not the most important thing when it comes to long-term investing. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year.
View our latest analysis for OncoSil Medical
The Last 12 Months Of Insider Transactions At OncoSil Medical
In fact, the recent purchase by Martin Cross was the biggest purchase of OncoSil Medical shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$0.096). 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. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
While OncoSil Medical insiders bought shares last year, they didn't sell. They paid about AU$0.073 on average. We don't deny that it is nice to see insiders buying stock in the company. But we must note that the investments were made at well below today's share price of AU$0.096. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
OncoSil Medical is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
OncoSil Medical Insiders Bought Stock Recently
We saw some OncoSil Medical insider buying shares in the last three months. Independent Non-Executive Director Martin Cross shelled out AU$56k for shares in that time. We like it when there are only buyers, and no sellers. However, in this case the amount invested recently is quite small.