In This Article:
Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of Oak Valley Bancorp (NASDAQ:OVLY), it sends a favourable message to the company's shareholders.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Check out our latest analysis for Oak Valley Bancorp
The Last 12 Months Of Insider Transactions At Oak Valley Bancorp
Notably, that recent purchase by H. Holder is the biggest insider purchase of Oak Valley Bancorp shares that we've seen in the last year. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$25.87). Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
In the last twelve months insiders purchased 15.90k shares for US$404k. But insiders sold 1.00k shares worth US$25k. In the last twelve months there was more buying than selling by Oak Valley Bancorp insiders. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Oak Valley Bancorp is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Insiders At Oak Valley Bancorp Have Bought Stock Recently
Over the last quarter, Oak Valley Bancorp insiders have spent a meaningful amount on shares. Not only was there no selling that we can see, but they collectively bought US$183k worth of shares. This is a positive in our book as it implies some confidence.
Does Oak Valley Bancorp Boast High Insider Ownership?
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. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 17% of Oak Valley Bancorp shares, worth about US$37m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Does This Data Suggest About Oak Valley Bancorp Insiders?
It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. Insiders likely see value in Oak Valley Bancorp shares, given these transactions (along with notable insider ownership of the company). To put this in context, take a look at how a company has performed in the past. You can access this detailed graph of past earnings, revenue and cash flow.