Last week, One Stop Systems, Inc.’s (NASDAQ:OSS) stock jumped 11%, but insiders who sold US$1.0m worth of stock in over the past year are likely to be in a better position. Selling at an average price of US$2.52, which is higher than the current price, may have been the best move for these insiders because their investment would have been worth less now than when they sold.
Although we don’t think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
Check out our latest analysis for One Stop Systems
One Stop Systems Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the insider, Stephen Cooper, for US$541k worth of shares, at about US$2.70 per share. That means that even when the share price was below the current price of US$3.22, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it’s only a weak signal. This single sale was just 7.3% of Stephen Cooper’s stake. Stephen Cooper was the only individual insider to sell shares in the last twelve months.
Stephen Cooper sold a total of 406.83k shares over the year at an average price of US$2.52. 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!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Insider Ownership
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Insiders own 17% of One Stop Systems shares, worth about US$11m. While this is a strong but not outstanding level of insider ownership, it’s enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At One Stop Systems Tell Us?
There haven’t been any insider transactions in the last three months — that doesn’t mean much. We don’t take much encouragement from the transactions by One Stop Systems insiders. But it’s good to see that insiders own shares in the company. 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. You’d be interested to know, that we found 2 warning signs for One Stop Systems and we suggest you have a look.
Of course One Stop Systems 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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Find out whether One Stop Systems is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.
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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.
