By selling US$6.8m worth of Ontrak, Inc. (NASDAQ:OTRK) stock at an average sell price of US$13.46 over the last year, insiders seemed to have made the most of their holdings. After the stock price dropped 23% last week, the company’s market value declined by US$6.2m, but insiders were able to mitigate their losses.
Although we don’t think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for Ontrak
Ontrak Insider Transactions Over The Last Year
The Founder & Executive Chairman, Terren Peizer, made the biggest insider sale in the last 12 months. That single transaction was for US$989k worth of shares at a price of US$23.56 each. While we don’t usually like to see insider selling, it’s more concerning if the sales take place 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$1.01. So it may not shed much light on insider confidence at current levels. The only individual insider seller over the last year was Terren Peizer.
Terren Peizer divested 503.63k shares over the last 12 months at an average price of US$13.46. 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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Ontrak Insiders Bought Stock Recently
It’s good to see that Ontrak insiders have made notable investments in the company’s shares. Specifically, Chief Information Officer Arik Hill bought US$77k worth of shares in that time, and we didn’t record any sales whatsoever. That shows some optimism about the company’s future.
Insider Ownership of Ontrak
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 30% of Ontrak shares, worth about US$6.3m. We’ve certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At Ontrak Tell Us?
The recent insider purchase is heartening. On the other hand the transaction history, over the last year, isn’t so positive. The more recent transactions are a positive, but Ontrak insiders haven’t shown the sustained enthusiasm that we look for, although they do own a decent number of shares, overall. So they seem pretty well aligned, overall. In addition to knowing about insider transactions going on, it’s beneficial to identify the risks facing Ontrak. Be aware that Ontrak is showing 4 warning signs in our investment analysis, and 1 of those shouldn’t be ignored…
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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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.
Read More: Ontrak, Inc. (NASDAQ:OTRK) insiders who sold US$6.8m worth of stock earlier this year are