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Looking at OM Holdings Limited's (ASX:OMH ) insider transactions over the last year, we can see that insiders were net buyers. That is, there were more number of shares purchased by insiders than there were sold.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
See our latest analysis for OM Holdings
OM Holdings Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Executive Chairman & CEO Ngee Tong Low bought AU$432k worth of shares at a price of AU$0.78 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$0.74). 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 always take careful note of the price insiders pay when purchasing shares. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Ngee Tong Low was the only individual insider to buy during the last year.
Ngee Tong Low purchased 750.60k shares over the year. The average price per share was AU$0.80. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
OM Holdings 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. We usually like to see fairly high levels of insider ownership. OM Holdings insiders own 40% of the company, currently worth about AU$220m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
What Might The Insider Transactions At OM Holdings Tell Us?
There haven't been any insider transactions in the last three months -- that doesn't mean much. But insiders have shown more of an appetite for the stock, over the last year. It would be great to see more insider buying, but overall it seems like OM Holdings insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. Therefore, you should definitely take a look at this FREE report showing analyst forecasts for OM Holdings.