NYSE:OLN) shareholders may wish to note that the Independent Director, Scott Sutton, recently bought US$226k worth of stock, paying US$11.31 for each share. That’s a very solid buy in our book, and increased their holding by a noteworthy 44%.” data-reactid=”28″>Potential Olin Corporation (NYSE:OLN) shareholders may wish to note that the Independent Director, Scott Sutton, recently bought US$226k worth of stock, paying US$11.31 for each share. That’s a very solid buy in our book, and increased their holding by a noteworthy 44%.
See our latest analysis for Olin ” data-reactid=”29″>See our latest analysis for Olin
Olin Insider Transactions Over The Last Year
In fact, the recent purchase by Independent Director Scott Sutton was not their only acquisition of Olin shares this year. They previously made an even bigger purchase of US$235k worth of shares at a price of US$15.73 per share. That means that an insider was happy to buy shares at above the current price of US$11.48. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company’s future. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
Happily, we note that in the last year insiders paid US$769k for 62.00k shares. On the other hand they divested 9.00k shares, for US$152k. In total, Olin insiders bought more than they sold over the last year. Their average price was about US$12.41. These transactions suggest that insiders have considered the current price attractive. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
list of companies. (Hint: insiders have been buying them).” data-reactid=”49″>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).
Insider Ownership of Olin
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it’s a good sign if insiders own a significant number of shares in the company. Olin insiders own about US$12m worth of shares. That equates to 0.7% of the company. We’ve certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At Olin Tell Us?
3 warning signs for Olin (2 can’t be ignored!) that we believe deserve your full attention.” data-reactid=”53″>It’s certainly positive to see the recent insider purchases. 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. When combined with notable insider ownership, these factors suggest Olin insiders are well aligned, and that they may think the share price is too low. So these insider transactions can help us build a thesis about the stock, but it’s also worthwhile knowing the risks facing this company. When we did our research, we found 3 warning signs for Olin (2 can’t be ignored!) that we believe deserve your full attention.
collection of high quality companies.” data-reactid=”54″>Of course Olin may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
Get in touch with us directly. Alternatively, email [email protected].” data-reactid=”60″>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.