Insiders' US$3.22m Investments In Red Following OneMedNet's US$7.5m Dip In Market Value
Insiders who acquired US$3.22m worth of OneMedNet Corporation's (NASDAQ:ONMD) stock at an average price of US$7.61 in the past 12 months may be dismayed by the recent 18% price decline. This is not good as insiders invest based on expectations that their money will appreciate over time. However, as a result of recent losses, their original investment is now worth only US$2.45m.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
The Last 12 Months Of Insider Transactions At OneMedNet
Over the last year, we can see that the biggest insider purchase was by Independent Director Thomas Kosasa for US$1m worth of shares, at about US$6.90 per share. That means that even when the share price was higher than US$5.79 (the recent price), an insider wanted to purchase shares. 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. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
Over the last year, we can see that insiders have bought 423.28k shares worth US$3.2m. But insiders sold 12.63k shares worth US$219k. Overall, OneMedNet insiders were net buyers during the last year. Their average price was about US$7.61. These transactions suggest that insiders have considered the current price attractive. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
See our latest analysis for OneMedNet
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.
Insiders At OneMedNet Have Bought Stock Recently
Over the last three months, we've seen significant insider buying at OneMedNet. Not only was there no selling that we can see, but they collectively bought US$1.1m worth of shares. This is a positive in our book as it implies some confidence.
Does OneMedNet Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. OneMedNet insiders own 61% of the company, currently worth about US$21m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Does This Data Suggest About OneMedNet Insiders?
It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest OneMedNet insiders are well aligned, and quite possibly think the share price is too low. Nice! 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. For example, OneMedNet has 5 warning signs (and 2 which can't be ignored) we think you should know about.
Of course OneMedNet 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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