Selling US$836k Of Odyssey Marine Exploration Stock Rewarded Insiders
While Odyssey Marine Exploration, Inc. (NASDAQ:OMEX) shareholders have enjoyed a good week with stock up 13%, they need remain vigilant. Although prices were relatively low, insiders chose to sell US$836k worth of stock in the past 12 months. This could be a sign of impending weakness.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
The Last 12 Months Of Insider Transactions At Odyssey Marine Exploration
Over the last year, we can see that the biggest insider sale was by the insider, Juan Cortina Gallardo, for US$836k worth of shares, at about US$1.72 per share. That means that even when the share price was below the current price of US$2.35, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 11% of Juan Cortina Gallardo's holding. The only individual insider seller over the last year was Juan Cortina Gallardo.
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!
Check out our latest analysis for Odyssey Marine Exploration
If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.
Does Odyssey Marine Exploration 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. We usually like to see fairly high levels of insider ownership. It appears that Odyssey Marine Exploration insiders own 15% of the company, worth about US$20m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About Odyssey Marine Exploration Insiders?
It doesn't really mean much that no insider has traded Odyssey Marine Exploration shares in the last quarter. We don't take much encouragement from the transactions by Odyssey Marine Exploration insiders. But it's good to see that insiders own shares in 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. In terms of investment risks, we've identified 4 warning signs with Odyssey Marine Exploration and understanding them should be part of your investment process.
But note: Odyssey Marine Exploration 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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