Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of OceanFirst Financial Corp. (NASDAQ:OCFC), it sends a favourable message to the company’s shareholders.
Although we don’t think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
View our latest analysis for OceanFirst Financial
The Last 12 Months Of Insider Transactions At OceanFirst Financial
The Independent Director Joseph Murphy made the biggest insider purchase in the last 12 months. That single transaction was for US$100k worth of shares at a price of US$15.45 each. That means that an insider was happy to buy shares at above the current price of US$13.34. It’s very possible they regret the purchase, but it’s more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
In the last twelve months OceanFirst Financial insiders were buying shares, but not selling. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
OceanFirst Financial is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does OceanFirst Financial Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. I reckon it’s a good sign if insiders own a significant number of shares in the company. OceanFirst Financial insiders own about US$27m worth of shares. That equates to 3.4% 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 OceanFirst Financial Tell Us?
It doesn’t really mean much that no insider has traded OceanFirst Financial shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Insiders do have a stake in OceanFirst Financial and their transactions don’t cause us concern. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
If you would prefer to check out another company — one with potentially superior financials — then do not miss this free list of interesting companies, that have HIGH return on equity 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.
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