OptimizeRx Corporation's (NASDAQ:OPRX) value has fallen 20% in the last week, but insiders who sold US$61k worth of stock over the last year have had less success. Insiders would probably have been better off holding on to their shares given that the average selling price of US$15.19 is still lower than the current share price.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
OptimizeRx Insider Transactions Over The Last Year
The General Counsel & Chief Compliance Officer, Marion Odence-Ford, made the biggest insider sale in the last 12 months. That single transaction was for US$61k worth of shares at a price of US$15.19 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (US$12.92). So it is hard to draw any strong conclusion from it. Marion Odence-Ford was the only individual insider to sell over the last year.
The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
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Insiders At OptimizeRx Have Sold Stock Recently
Over the last three months, we've seen significant insider selling at OptimizeRx. In total, General Counsel & Chief Compliance Officer Marion Odence-Ford sold US$61k worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain.
Insider Ownership
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. OptimizeRx insiders own about US$29m worth of shares. That equates to 12% 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.
So What Does This Data Suggest About OptimizeRx Insiders?
An insider sold stock recently, but they haven't been buying. And there weren't any purchases to give us comfort, over the last year. While insiders do own shares, they don't own a heap, and they have been selling. We're in no rush to buy! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing OptimizeRx. While conducting our analysis, we found that OptimizeRx has 3 warning signs and it would be unwise to ignore these.
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.