Looking at OmniAb, Inc.'s (NASDAQ:OABI ) insider transactions over the last year, we can see that insiders were net buyers. That is, there were more number of shares purchased by insiders than there were sold.

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.

Check out our latest analysis for OmniAb

The Last 12 Months Of Insider Transactions At OmniAb

In fact, the recent sale by President Matthew Foehr was not their only trade of OmniAb shares this year. Earlier in the year, they spent US$1.2m to buy shares at US$5.19 per share. That means that even when the share price was higher than US$3.20 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Matthew Foehr was the only individual insider to buy during the last year. We note that Matthew Foehr was also the biggest seller.

Matthew Foehr purchased 465.00k shares over the year. The average price per share was US$4.79. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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.

OmniAb Insiders Are Selling The Stock

The last quarter saw substantial insider selling of OmniAb shares. Specifically, insiders ditched US$268k 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 OmniAb

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. OmniAb insiders own about US$21m worth of shares. That equates to 5.4% of the company. 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 OmniAb Tell Us?

Insiders sold stock recently, but they haven't been buying. On the other hand, the insider transactions over the last year are encouraging. And insiders do own shares. So we're not overly bothered by recent selling. 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. While conducting our analysis, we found that OmniAb has 2 warning signs and it would be unwise to ignore these.

Of course OmniAb 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.