Phillip Frost Spends US$891k On OPKO Health Stock

Those following along with OPKO Health, Inc. (NASDAQ:OPK) will no doubt be intrigued by the recent purchase of shares by Phillip Frost, Chairman & CEO of the company, who spent a stonking US$891k on stock at an average price of US$1.32. While that only increased their holding size by 0.3%, it is still a big swing by our standards.

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The Last 12 Months Of Insider Transactions At OPKO Health

Notably, that recent purchase by Phillip Frost is the biggest insider purchase of OPKO Health shares that we've seen in the last year. That means that an insider was happy to buy shares at above the current price of US$1.25. 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. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Phillip Frost was the only individual insider to buy shares in the last twelve months.

Phillip Frost purchased 3.44m shares over the year. The average price per share was US$1.51. 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 OPKO Health

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Does OPKO Health Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. OPKO Health insiders own 44% of the company, currently worth about US$437m based on the recent share price. 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 OPKO Health Tell Us?

It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about OPKO Health. One for the watchlist, at least! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing OPKO Health. You'd be interested to know, that we found 1 warning sign for OPKO Health and we suggest you have a look.

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.