Despite Hitting US$8.08, Optex Systems Holdings Insiders Still Sold Too Soon

Optex Systems Holdings, Inc's (NASDAQ:OPXS) value has fallen 12% in the last week, but insiders who sold US$96k worth of stock over the last year have had less success. Given that the average selling price of US$13.62 is still lower than the current share price, insiders would probably have been better off keeping their shares.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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The Last 12 Months Of Insider Transactions At Optex Systems Holdings

Over the last year, we can see that the biggest insider sale was by the President, Chad George, for US$96k worth of shares, at about US$13.62 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. The good news is that this large sale was at well above current price of US$8.08. So it may not shed much light on insider confidence at current levels. The only individual insider seller over the last year was Chad George.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

View our latest analysis for Optex Systems Holdings

I will like Optex Systems Holdings better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insider Ownership Of Optex Systems Holdings

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. Optex Systems Holdings insiders own about US$10m worth of shares. That equates to 16% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Optex Systems Holdings Tell Us?

It doesn't really mean much that no insider has traded Optex Systems Holdings shares in the last quarter. We don't take much encouragement from the transactions by Optex Systems Holdings insiders. But we do like the fact that insiders own a fair chunk of the company. 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. While conducting our analysis, we found that Optex Systems Holdings has 1 warning sign and it would be unwise to ignore it.

Of course Optex Systems Holdings 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 of direct interests only, but not derivative transactions or indirect interests.

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