Have Oracle Insiders Been Selling Stock?
Some Oracle Corporation (NYSE:ORCL) shareholders may be a little concerned to see that the Chief Executive Officer & Director, Clayton Magouyrk, recently sold a substantial US$1.9m worth of stock at a price of US$193 per share. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 6.5%.
The Last 12 Months Of Insider Transactions At Oracle
The Independent Director, Jeffrey Berg, made the biggest insider sale in the last 12 months. That single transaction was for US$14m worth of shares at a price of US$284 each. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (US$198). So it may not shed much light on insider confidence at current levels.
Happily, we note that in the last year insiders paid US$1.1m for 5.98k shares. But insiders sold 187.89k shares worth US$49m. All up, insiders sold more shares in Oracle than they bought, over the last year. 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!
Check out our latest analysis for Oracle
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Does Oracle Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Oracle insiders own 41% of the company, currently worth about US$230b based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Do The Oracle Insider Transactions Indicate?
Insiders haven't bought Oracle stock in the last three months, but there was some selling. Despite some insider buying, the longer term picture doesn't make us feel much more positive. But it is good to see that Oracle is growing earnings. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. To that end, you should learn about the 3 warning signs we've spotted with Oracle (including 1 which is a bit concerning).
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.