Stephen Shea Spends US$107k On Omega Flex Stock

Potential Omega Flex, Inc. (NASDAQ:OFLX) shareholders may wish to note that the Independent Director, Stephen Shea, recently bought US$107k worth of stock, paying US$28.46 for each share. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.

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Omega Flex Insider Transactions Over The Last Year

In fact, the recent purchase by Stephen Shea was the biggest purchase of Omega Flex shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at above the current price of US$28.07. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

In the last twelve months insiders purchased 4.75k shares for US$135k. But insiders sold 972.00 shares worth US$31k. In the last twelve months there was more buying than selling by Omega Flex insiders. 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!

Check out our latest analysis for Omega Flex

Omega Flex is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Does Omega Flex Boast High Insider Ownership?

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. Omega Flex insiders own about US$185m worth of shares (which is 65% of the company). 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 Does This Data Suggest About Omega Flex Insiders?

It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest Omega Flex insiders are well aligned, and quite possibly think the share price is too low. That's what I like to see! While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Omega Flex.

Of course Omega Flex may not be the best stock to buy. So you may wish to see this free collection of high quality 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 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.