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It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Opus Genetics, Inc.'s (NASDAQ:IRD) case, it's fantastic news for 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.
Opus Genetics Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when CEO & Director George Magrath bought US$101k worth of shares at a price of US$1.02 per share. That means that an insider was happy to buy shares at around the current price of US$1.13. 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. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for Opus Genetics share holders is that insiders were buying at near the current price.
In the last twelve months Opus Genetics insiders were buying shares, but not selling. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
View our latest analysis for Opus Genetics
There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).
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. We usually like to see fairly high levels of insider ownership. Based on our data, Opus Genetics insiders have about 2.5% of the stock, worth approximately US$1.3m. We prefer to see high levels of insider ownership.
So What Does This Data Suggest About Opus Genetics Insiders?
The fact that there have been no Opus Genetics insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. The transactions are fine but it'd be more encouraging if Opus Genetics insiders bought more shares in the company. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Case in point: We've spotted 4 warning signs for Opus Genetics you should be aware of, and 1 of them can't be ignored.