In This Article:
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 Ondo InsurTech Plc (LON:ONDO), 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 Ondo InsurTech
The Last 12 Months Of Insider Transactions At Ondo InsurTech
The Non-Executive Chairman Gregory Wood made the biggest insider purchase in the last 12 months. That single transaction was for UK£49k worth of shares at a price of UK£0.15 each. That means that an insider was happy to buy shares at above the current price of UK£0.14. 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. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
Ondo InsurTech insiders may have bought shares in the last year, but they didn't sell any. 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.
Ondo InsurTech Insiders Bought Stock Recently
It's good to see that Ondo InsurTech insiders have made notable investments in the company's shares. Overall, two insiders shelled out UK£55k for shares in the company -- and none sold. This makes one think the business has some good points.
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. We usually like to see fairly high levels of insider ownership. From our data, it seems that Ondo InsurTech insiders own 15% of the company, worth about UK£2.5m. However, it's possible that insiders might have an indirect interest through a more complex structure. We do generally prefer see higher levels of insider ownership.
So What Do The Ondo InsurTech Insider Transactions Indicate?
The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Ondo InsurTech insiders are reasonably well aligned, and optimistic for the future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. When we did our research, we found 5 warning signs for Ondo InsurTech (1 is significant!) that we believe deserve your full attention.