We’ve lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. On the other hand, we’d be remiss not to mention that insider sales have been known to precede tough periods for a business. So we’ll take a look at whether insiders have been buying or selling shares in Oceaneering International, Inc. (NYSE:OII).
What Is Insider Buying?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, rules govern insider transactions, and certain disclosures are required.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But it is perfectly logical to keep tabs on what insiders are doing. As Peter Lynch said, ‘insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise’.
See our latest analysis for Oceaneering International
The Last 12 Months Of Insider Transactions At Oceaneering International
The Director M. McEvoy made the biggest insider purchase in the last 12 months. That single transaction was for US$92k worth of shares at a price of US$3.05 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$4.07. Because the shares were purchased at a lower price, this particular buy doesn’t tell us much about how insiders feel about the current share price.
In the last twelve months insiders purchased 112.28k shares for US$377k. On the other hand they divested 1.90k shares, for US$9.9k. In the last twelve months there was more buying than selling by Oceaneering International insiders. They paid about US$3.36 on average. These transactions show that insiders have confidence to invest their own money in the stock, albeit at slightly below the recent 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 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.
Have Oceaneering International Insiders Traded Recently?
We have seen a bit of insider selling at Oceaneering International, over the last three months. Independent Director T. Collins divested only US$9.9k worth of shares in that time. Neither the lack of buying nor the presence of selling is heartening. But the selling simply isn’t sufficiently substantial to be of much use as a signal.
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. From our data, it seems that Oceaneering International insiders own 1.4% of the company, worth about US$5.6m. Overall, this level of ownership isn’t that impressive, but it’s certainly better than nothing!
So What Does This Data Suggest About Oceaneering International Insiders?
We did not see any insider buying in the last three months, but we did see selling. But the sales were small, so we’re not concerned. But insiders have shown more of an appetite for the stock, over the last year. While we have no worries about the insider transactions, we’d be more comfortable if they owned more Oceaneering International stock. In addition to knowing about insider transactions going on, it’s beneficial to identify the risks facing Oceaneering International. At Simply Wall St, we’ve found that Oceaneering International has 2 warning signs (1 makes us a bit uncomfortable!) that deserve your attention before going any further with your analysis.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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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