OmniAb Insiders Enjoying US$277k Appreciation On US$1.59m Investment

Insiders who bought OmniAb, Inc. (NASDAQ:OABI) stock in the last 12 months were richly rewarded last week. The company's market value increased by US$29m as a result of the stock's 10% gain over the same period. In other words, the original US$1.59m purchase is now worth US$1.87m.

While insider transactions are not the most important thing when it comes to long-term investing, 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 OmniAb

In the last twelve months, the biggest single purchase by an insider was when President Matthew Foehr bought US$1m worth of shares at a price of US$1.85 per share. We do like to see buying, but this purchase was made at well below the current price of US$2.15. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

Happily, we note that in the last year insiders paid US$1.6m for 867.55k shares. But they sold 82.83k shares for US$268k. In the last twelve months there was more buying than selling by OmniAb insiders. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

View our latest analysis for OmniAb

OmniAb is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

OmniAb Insiders Bought Stock Recently

It's good to see that OmniAb insiders have made notable investments in the company's shares. Chairman John Higgins spent US$108k on stock, and there wasn't any selling. This is a positive in our book as it implies some confidence.

Does OmniAb Boast High 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. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that OmniAb insiders own 12% of the company, worth about US$37m. 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 OmniAb Insiders?

The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. Given that insiders also own a fair bit of OmniAb we think they are probably pretty confident of a bright future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example - OmniAb has 2 warning signs we think you should be aware of.

But note: OmniAb 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.