Yahoo Finance Open Text Insiders Added US$46m Of Stock To Their Holdings \
In the last year, multiple insiders have substantially increased their holdings of Open Text Corporation (NASDAQ:OTEX) stock, indicating that insiders' optimism about the company's prospects has increased.
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.
View our latest analysis for Open Text
Open Text Insider Transactions Over The Last Year
The Independent Chairman of the Board Paul Jenkins made the biggest insider purchase in the last 12 months. That single transaction was for US$24m worth of shares at a price of US$31.65 each. We do like to see buying, but this purchase was made at well below the current price of US$40.18. 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.
In the last twelve months insiders purchased 1.51m shares for US$46m. But insiders sold 5.98k shares worth US$187k. In total, Open Text insiders bought more than they sold over the last year. 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!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insider Ownership Of Open Text
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Open Text insiders own 2.2% of the company, currently worth about US$238m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
What Might The Insider Transactions At Open Text Tell Us?
It doesn't really mean much that no insider has traded Open Text shares in the last quarter. However, our analysis of transactions over the last year is heartening. Judging from their transactions, and high insider ownership, Open Text insiders feel good about the company's 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. Be aware that Open Text is showing 3 warning signs in our investment analysis, and 1 of those shouldn't be ignored...
Of course Open Text may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
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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