Insiders At Oculis Holding Sold CHF1.0m In Stock, Alluding To Potential Weakness

The fact that multiple Oculis Holding AG (NASDAQ:OCS) insiders offloaded a considerable amount of shares over the past year could have raised some eyebrows amongst investors. When analyzing insider transactions, it is usually more valuable to know whether insiders are buying versus knowing if they are selling, as the latter sends an ambiguous message. However, if numerous insiders are selling, shareholders should investigate more.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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Oculis Holding Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the CEO & Director, Riad Sherif, for US$868k worth of shares, at about US$36.24 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$11.06. So it is hard to draw any strong conclusion from it.

In the last twelve months insiders purchased 24.87k shares for US$428k. On the other hand they divested 32.49k shares, for US$1.0m. In total, Oculis Holding insiders sold more than they bought over the last year. The average sell price was around CHF31.55. We are not joyful about insider selling. But we note that the selling, on average, was at well above the recently traded price of US$11.06. 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!

Check out our latest analysis for Oculis Holding

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Oculis Holding Insiders Bought Stock Recently

Over the last quarter, Oculis Holding insiders have spent a meaningful amount on shares. In total, insiders bought US$139k worth of shares in that time, and we didn't record any sales whatsoever. This makes one think the business has some good points.

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Oculis Holding insiders own about US$26m worth of shares. That equates to 3.9% 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.

So What Does This Data Suggest About Oculis Holding Insiders?

It is good to see recent purchasing. However, the longer term transactions are not so encouraging. We don't take much heart from transactions by Oculis Holding insiders over the last year. But they own a reasonable amount of the company, and there was some buying recently. In short they are likely aligned with shareholders. While it's good to be aware of 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. Every company has risks, and we've spotted 3 warning signs for Oculis Holding you should know about.

But note: Oculis Holding may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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.