Yahoo Finance Trade Alert: The CEO, President & Director Of OncoCyte Corporation (NYSEMKT:OCX), Ronald Andrews, Has Just Spent US$54k Buying 64% More Shares
Whilst it may not be a huge deal, we thought it was good to see that the OncoCyte Corporation (NYSEMKT:OCX) CEO, President & Director, Ronald Andrews, recently bought US$54k worth of stock, for US$1.35 per share. While that isn't the hugest buy, it actually boosted their shareholding by 64%, which is good to see.
See our latest analysis for OncoCyte
The Last 12 Months Of Insider Transactions At OncoCyte
The Independent Director Andrew Arno made the biggest insider purchase in the last 12 months. That single transaction was for US$108k worth of shares at a price of US$2.16 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$1.83). It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
In the last twelve months OncoCyte insiders were buying shares, but not selling. The average buy price was around US$1.90. I'd consider this a positive as it suggests insiders see value at around the current price. 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).
Does OncoCyte Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that OncoCyte insiders own 8.5% of the company, worth about US$10m. 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 Does This Data Suggest About OncoCyte Insiders?
The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Given that insiders also own a fair bit of OncoCyte we think they are probably pretty confident of a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing OncoCyte. To help with this, we've discovered 5 warning signs (2 can't be ignored!) that you ought to be aware of before buying any shares in OncoCyte.
Of course OncoCyte 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.
This article by Simply Wall St is general in nature. 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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