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Oportun Financial Corporation (NASDAQ:OPRT) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 35%, resulting in a US$70m rise in the company's market capitalisation, translating to a gain of 121% on their initial investment. In other words, the original US$449.1k purchase is now worth US$993.7k.
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.
View our latest analysis for Oportun Financial
Oportun Financial Insider Transactions Over The Last Year
The CFO & Chief Administrative Officer Jonathan Coblentz made the biggest insider purchase in the last 12 months. That single transaction was for US$100k worth of shares at a price of US$3.91 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$7.57. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
Over the last year, we can see that insiders have bought 131.26k shares worth US$449k. On the other hand they divested 24.81k shares, for US$77k. In the last twelve months there was more buying than selling by Oportun Financial insiders. The average buy price was around US$3.42. To my mind it is good that insiders have invested their own money in the company. However, we do note that they were buying at significantly lower prices than today's share price. You can see the insider transactions (by companies and 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!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.
Oportun Financial Insiders Bought Stock Recently
At Oportun Financial,over the last quarter, we have observed quite a lot more insider buying than insider selling. In fact, five insiders bought US$318k worth of shares. On the other hand, insiders netted US$44k by selling. We think insiders may be optimistic about the future, since insiders have been net buyers of shares.
Does Oportun Financial Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 8.9% of Oportun Financial shares, worth about US$24m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.