Investors who take an interest in OPKO Health, Inc. (NASDAQ:OPK) should definitely note that the Chairman & CEO, Phillip Frost, recently paid US$1.74 per share to buy US$348k worth of the stock. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.

Check out our latest analysis for OPKO Health

The Last 12 Months Of Insider Transactions At OPKO Health

In fact, the recent purchase by Chairman & CEO Phillip Frost was not their only acquisition of OPKO Health shares this year. They previously made an even bigger purchase of US$781k worth of shares at a price of US$1.56 per share. Even though the purchase was made at a significantly lower price than the recent price (US$1.86), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

Phillip Frost purchased 2.53m shares over the year. The average price per share was US$1.52. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company 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 OPKO Health insiders own 52% of the company, worth about US$624m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At OPKO Health Tell Us?

It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Once you factor in the high insider ownership, it certainly seems like insiders are positive about OPKO Health. That's what I like to see! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing OPKO Health. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of OPKO Health.

Of course OPKO Health 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.