Oxford Nanopore Technologies plc (LON:ONT) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 7.8% resulting in a UK£170m addition to the company’s market value. As a result, the stock they originally bought for UK£199k is now worth UK£223k.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
The Last 12 Months Of Insider Transactions At Oxford Nanopore Technologies
In the last twelve months, the biggest single purchase by an insider was when CTO & Director Clive Brown bought UK£150k worth of shares at a price of UK£2.34 per share. Even though the purchase was made at a significantly lower price than the recent price (UK£2.83), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
While Oxford Nanopore Technologies 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 want to know exactly who sold, for how much, and when, simply click on the graph below!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Oxford Nanopore Technologies Insiders Bought Stock Recently
Over the last quarter, Oxford Nanopore Technologies insiders have spent a meaningful amount on shares. We can see that CTO & Director Clive Brown paid UK£150k for shares in the company. No-one sold. This is a positive in our book as it implies some confidence.
Does Oxford Nanopore Technologies 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. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 2.1% of Oxford Nanopore Technologies shares, worth about UK£49m. 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 Do The Oxford Nanopore Technologies Insider Transactions Indicate?
The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. Given that insiders also own a fair bit of Oxford Nanopore Technologies we think they are probably pretty confident of a bright future. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. At Simply Wall St, we found 2 warning signs for Oxford Nanopore Technologies that deserve your attention before buying any shares.
But note: Oxford Nanopore Technologies may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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