Some OFG Bancorp (NYSE:OFG) shareholders may be a little concerned to see that the Independent Chairman of the Board, Julian Inclan, recently sold a substantial US$508k worth of stock at a price of US$33.87 per share. That sale reduced their total holding by 13% which is hardly insignificant, but far from the worst we've seen.
See our latest analysis for OFG Bancorp
The Last 12 Months Of Insider Transactions At OFG Bancorp
In the last twelve months, the biggest single sale by an insider was when the President, Jose Fernandez, sold US$1.7m worth of shares at a price of US$33.11 per share. That means that even when the share price was slightly below the current price of US$33.67, 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. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. It is worth noting that this sale was only 11% of Jose Fernandez's holding.
In the last year OFG Bancorp insiders didn't buy any company stock. 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!
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Insider Ownership Of OFG Bancorp
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. It appears that OFG Bancorp insiders own 2.0% of the company, worth about US$32m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About OFG Bancorp Insiders?
Insiders haven't bought OFG Bancorp stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. But since OFG Bancorp is profitable and growing, we're not too worried by this. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We'd practice some caution before buying! 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 help with this, we've discovered 3 warning signs (1 shouldn't be ignored!) that you ought to be aware of before buying any shares in OFG Bancorp.
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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.