Yahoo Finance Ocwen Financial Corporation (NYSE:OCN) insiders placed bullish bets worth US$4.0m in the last 12 months
Quite a few insiders have dramatically grown their holdings in Ocwen Financial Corporation (NYSE:OCN) over the past 12 months. An insider's optimism about the company's prospects is a positive sign.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
View our latest analysis for Ocwen Financial
The Last 12 Months Of Insider Transactions At Ocwen Financial
The insider Howard Amster made the biggest insider purchase in the last 12 months. That single transaction was for US$3.8m worth of shares at a price of US$29.03 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$34.65. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
Ocwen Financial 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. By clicking on the graph below, you can see the precise details of each insider transaction!
Ocwen Financial is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Ocwen Financial Insiders Bought Stock Recently
It's good to see that Ocwen Financial insiders have made notable investments in the company's shares. insider Howard Amster spent US$3.8m on stock, and there wasn't any selling. This is a positive in our book as it implies some confidence.
Does Ocwen Financial Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Ocwen Financial insiders own 18% of the company, worth about US$47m. 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 Ocwen Financial Insider Transactions Indicate?
It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest Ocwen Financial insiders are well aligned, and that they may think the share price is too low. 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. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Ocwen Financial.
But note: Ocwen Financial 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here
