Investors may wish to note that the Independent Director of O'Reilly Automotive, Inc., John Murphy, recently netted US$90k from selling stock, receiving an average price of US$452. On the bright side, that's just a small sale and only reduced their holding by 8.5%.
O'Reilly Automotive Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the Executive Chairman, David O'Reilly, for US$14m worth of shares, at about US$470 per share. So what is clear is that an insider saw fit to sell at around the current price of US$462. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).
In the last twelve months insiders purchased 550.00 shares for US$213k. On the other hand they divested 63.94k shares, for US$29m. Over the last year we saw more insider selling of O'Reilly Automotive shares, than buying. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, 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 O'Reilly Automotive 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 O'Reilly Automotive
For a common shareholder, it is worth checking how many shares are held by company 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. O'Reilly Automotive insiders own about US$558m worth of shares (which is 1.7% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
What Might The Insider Transactions At O'Reilly Automotive Tell Us?
Insiders haven't bought O'Reilly Automotive stock in the last three months, but there was some selling. Zooming out, the longer term picture doesn't give us much comfort. But it is good to see that O'Reilly Automotive is growing earnings. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. 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 - O'Reilly Automotive has 2 warning signs we think you should be aware of.
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.
This article by Simply Wall St is general in nature. 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.
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