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In the last year, many O'Reilly Automotive, Inc. (NASDAQ:ORLY) insiders sold a substantial stake in the company which may have sparked shareholders' attention. Knowing whether insiders are buying is usually more helpful when evaluating insider transactions, as insider selling can have various explanations. However, if numerous insiders are selling, shareholders should investigate more.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
The Last 12 Months Of Insider Transactions At O'Reilly Automotive
In the last twelve months, the biggest single sale by an insider was when the Executive Vice Chairman, David O'Reilly, sold US$26m worth of shares at a price of US$1,126 per share. That means that even when the share price was below the current price of US$1,378, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 9.4% of David O'Reilly's stake.
O'Reilly Automotive insiders didn't buy any shares over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Check out our latest analysis for O'Reilly Automotive
If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.
Insiders At O'Reilly Automotive Have Sold Stock Recently
The last quarter saw substantial insider selling of O'Reilly Automotive shares. In total, insiders sold US$6.5m worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.
Insider Ownership Of O'Reilly Automotive
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that O'Reilly Automotive insiders own 0.8% of the company, worth about US$643m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.