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Several Insiders Invested In Omega Flex Flagging Positive News
When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Omega Flex, Inc.'s (NASDAQ:OFLX) instance, it's good news for shareholders.
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.
Omega Flex Insider Transactions Over The Last Year
The Independent Director Stephen Shea made the biggest insider purchase in the last 12 months. That single transaction was for US$107k worth of shares at a price of US$28.47 each. That means that an insider was happy to buy shares at above the current price of US$27.27. Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
Omega Flex insiders may have bought shares in the last year, but they didn't sell any. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
See our latest analysis for Omega Flex
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.
Insiders At Omega Flex Have Bought Stock Recently
Over the last three months, we've seen a bit of insider buying at Omega Flex. Insiders bought US$46k worth of shares in that time. It's good to see the insider buying, as well as the lack of recent sellers. But in this case the amount purchased means the recent transaction may not be very meaningful on its own.
Insider Ownership
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. Omega Flex insiders own about US$173m worth of shares (which is 65% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Do The Omega Flex Insider Transactions Indicate?
Our data shows a little insider buying, but no selling, in the last three months. The net investment is not enough to encourage us much. But insiders have shown more of an appetite for the stock, over the last year. With high insider ownership and encouraging transactions, it seems like Omega Flex insiders think the business has merit. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Omega Flex. Every company has risks, and we've spotted 3 warning signs for Omega Flex (of which 2 don't sit too well with us!) you should know about.
But note: Omega Flex 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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