We note that a Overstock.com, Inc. (NASDAQ:OSTK) insider, Krista Mathews, recently sold US$59k worth of stock for US$29.33 per share. It might not be a huge sale, but it did reduce their holding size 27%, hardly encouraging.
The Last 12 Months Of Insider Transactions At Overstock.com
In the last twelve months, the biggest single sale by an insider was when the insider, Ronald Hilton, sold US$594k worth of shares at a price of US$104 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$28.94. So it may not shed much light on insider confidence at current levels.
In total, Overstock.com insiders sold more 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!
I will like Overstock.com better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Insider Ownership Of Overstock.com
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. I reckon it's a good sign if insiders own a significant number of shares in the company. Overstock.com insiders own about US$14m worth of shares. That equates to 1.0% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At Overstock.com Tell Us?
Insider selling has just outweighed insider buying in the last three months. But the difference isn't enough to have us worried. We're a little cautious about the insider selling at Overstock.com. The modest level of insider ownership is, at least, some comfort. 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. Case in point: We've spotted 4 warning signs for Overstock.com you should be aware of, and 1 of them is a bit unpleasant.
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, but not derivative transactions.
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