Some OSI Systems, Inc. (NASDAQ:OSIS) shareholders may be a little concerned to see that the Executive Chairman, Deepak Chopra, recently sold a substantial US$1.1m worth of stock at a price of US$220 per share. However, that sale only accounted for 1.5% of their holding, so arguably it doesn't say much about their conviction.
Our free stock report includes 2 warning signs investors should be aware of before investing in OSI Systems. Read for free now.OSI Systems Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the Executive VP & CFO, Alan Edrick, for US$6.3m worth of shares, at about US$144 per share. That means that even when the share price was below the current price of US$224, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was only 13% of Alan Edrick's holding.
OSI Systems insiders didn't buy any shares over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
View our latest analysis for OSI Systems
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Insider Ownership Of OSI Systems
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. A high insider ownership often makes company leadership more mindful of shareholder interests. OSI Systems insiders own about US$219m worth of shares (which is 5.9% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
What Might The Insider Transactions At OSI Systems Tell Us?
Insiders sold OSI Systems shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. But it is good to see that OSI Systems is growing earnings. It is good to see high insider ownership, but the insider selling leaves us cautious. 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 instance, we've identified 2 warning signs for OSI Systems (1 makes us a bit uncomfortable) you should be aware of.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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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