Quite a few insiders have dramatically grown their holdings in Oakley Capital Investments Limited (LON:OCI) over the past 12 months. An insider’s optimism about the company’s prospects is a positive sign.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
In the last twelve months, the biggest single purchase by an insider was when Co-Founder Peter Adam Dubens bought UK£579k worth of shares at a price of UK£5.06 per share. That means that an insider was happy to buy shares at around the current price of UK£5.60. That means they have been optimistic about the company in the past, though they may have changed their mind. While we always like to see insider buying, it’s less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. In this case we’re pleased to report that the insider purchases were made at close to current prices.
Oakley Capital Investments insiders may have bought shares in the last year, but they didn’t sell any. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
See our latest analysis for Oakley Capital Investments
Oakley Capital Investments is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.
Over the last quarter, Oakley Capital Investments insiders have spent a meaningful amount on shares. Not only was there no selling that we can see, but they collectively bought UK£77k worth of shares. This makes one think the business has some good points.
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it’s a good sign if insiders own a significant number of shares in the company. It’s great to see that Oakley Capital Investments insiders own 13% of the company, worth about UK£124m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
