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A number of insiders bought Oracle Power plc (LON:ORCP) stock last year, which is great news for shareholders

·3-min read

Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of Oracle Power plc (LON:ORCP), it sends a favourable message to the company's shareholders.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Oracle Power

Oracle Power Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by CEO & Executive Director Naheed Memon for UK£55k worth of shares, at about UK£0.0031 per share. That means that an insider was happy to buy shares at around the current price of UK£0.0032. Of course they may have changed their mind. But this suggests they are optimistic. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. Happily, the Oracle Power insiders decided to buy shares at close to current prices.

While Oracle Power insiders bought shares during the last year, they didn't sell. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
insider-trading-volume

Oracle Power is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Are Oracle Power Insiders Buying Or Selling?

We've only seen a tiny insider purchase valued at UK£3.5k, in the last three months. Looking at the net result, we don't think these recent trades shed much light on how insiders, as a group, are feeling about the company's prospects.

Does Oracle Power Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Our data indicates that Oracle Power insiders own about UK£672k worth of shares (which is 7.8% of the company). We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. We do generally prefer see higher levels of insider ownership.

So What Does This Data Suggest About Oracle Power Insiders?

We note a that there has been a bit of insider buying recently (but no selling). That said, the purchases were not large. But insiders have shown more of an appetite for the stock, over the last year. We'd like to see bigger individual holdings. However, we don't see anything to make us think Oracle Power insiders are doubting the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Oracle Power. Our analysis shows 7 warning signs for Oracle Power (3 are a bit unpleasant!) and we strongly recommend you look at these before investing.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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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