Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of Oxford Biomedica plc (LON:OXB), that sends out a positive message to the company’s shareholders.
Although we don’t think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for Oxford Biomedica
The Last 12 Months Of Insider Transactions At Oxford Biomedica
The Non-Executive Chair Frederic Doliveux made the biggest insider purchase in the last 12 months. That single transaction was for UK£99k worth of shares at a price of UK£2.74 each. So it’s clear an insider wanted to buy, even at a higher price than the current share price (being UK£2.01). Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it’s very important to consider the price insiders pay for shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
While Oxford Biomedica insiders bought shares during the last year, they didn’t sell. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
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 Oxford Biomedica
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Insiders own 3.6% of Oxford Biomedica shares, worth about UK£7.3m, according to our data. But they may have an indirect interest through a corporate structure that we haven’t picked up on. We do generally prefer see higher levels of insider ownership.
So What Do The Oxford Biomedica Insider Transactions Indicate?
The fact that there have been no Oxford Biomedica insider transactions recently certainly doesn’t bother us. However, our analysis of transactions over the last year is heartening. The transactions are fine but it’d be more encouraging if Oxford Biomedica insiders bought more shares in the company. So these insider transactions can help us build a thesis about the stock, but it’s also worthwhile knowing the risks facing this company. At Simply Wall St, we found 2 warning signs for Oxford Biomedica that deserve your attention before buying any shares.
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 of direct interests only, but not derivative transactions or indirect interests.
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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.
