Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of Opyl Limited (ASX:OPL), that sends out a positive message to the company's shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
Check out our latest analysis for Opyl
Opyl Insider Transactions Over The Last Year
The insider Peter Rubinstein made the biggest insider purchase in the last 12 months. That single transaction was for AU$107k worth of shares at a price of AU$0.03 each. We do like to see buying, but this purchase was made at well below the current price of AU$0.05. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
While Opyl insiders bought shares during the last year, they didn't sell. 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!
Opyl is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insiders At Opyl Have Bought Stock Recently
Over the last quarter, Opyl insiders have spent a meaningful amount on shares. In total, insiders bought AU$136k worth of shares in that time, and we didn't record any sales whatsoever. That shows some optimism about the company's future.
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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 30% of Opyl shares, worth about AU$1.3m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At Opyl Tell Us?
The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Given that insiders also own a fair bit of Opyl we think they are probably pretty confident of a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Opyl. At Simply Wall St, we found 5 warning signs for Opyl that deserve your attention before buying any shares.