Insider Buying: Opko Health
What’s more interesting in fact, Phillip Frost has bought $2.6 million worth of stock over the last two weeks according to Form 4 filings with the SEC. That’s roughly 1.5% of the company’s total market capitalization.
|Insider Trading||Relationship||Date||#Shares||Value ($)|
|Phillip Frost||CEO & Chairman||Feb 02||55,000||$236,680|
|Phillip Frost||CEO & Chairman||Jan 31||65,000||$290,416|
|Phillip Frost||CEO & Chairman||Jan 26||55,000||$269,712|
|Phillip Frost||CEO & Chairman||Jan 25||75,000||$374,204|
|Phillip Frost||CEO & Chairman||Jan 24||100,000||$488,829|
|Phillip Frost||CEO & Chairman||Jan 23||100,000||$476,070|
|Phillip Frost||CEO & Chairman||Jan 22||100,000||$439,675|
The company’s shares last traded at $4.38 as of Monday, down 50% over the last year and 14% over the last month. While the stock has been hammered of late, could the recent insider transactions signal a promising road ahead for shareholders?
|Analysis||Model Fair Value||Upside (Downside)|
|10-yr DCF Revenue Exit||$11.31||158.5%|
|Peer Revenue Multiples||$9.48||116.8%|
|10-yr DCF EBITDA Exit||$4.16||-5.0%|
|5-yr DCF EBITDA Exit||$3.05||-30.2%|
|10-yr DCF Growth Exit||$2.83||-35.3%|
|Earnings Power Value||$2.68||-38.8%|
Finbox.io applies pre-built valuation models to calculate a fair value for a given stock and uses consensus Wall Street estimates for the forecast when available. The company’s average fair value of $5.58 implies 27.6% upside and is calculated from 6 separate analyses as shown in the table above.
While insider activity on its own is not necessarily a buy or sell signal, it may offer insight into how ownership and management feel about a company’s future prospects. One of the greatest investors of all time, Peter Lynch, was noted as saying that:
insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.
However, keep in mind this is only one aspect of stock research and that there are other important items to consider. I recommend you continue to research Opko Health to get a more comprehensive view of the company’s fundamentals by looking at:
Author: Matt Hogan
Expertise: Valuation, financial statement analysis
Matt Hogan is a co-founder of finbox.io. His expertise is in investment decision making. Prior to finbox.io, Matt worked for an investment banking group providing fairness opinions in connection to stock acquisitions. He spent much of his time building valuation models to help clients determine an asset’s fair value. He believes that these same valuation models should be used by all investors before buying or selling a stock.
Matt can be reached at email@example.com.
As of this writing, I did not hold a position in any of the aforementioned securities and this is not a buy or sell recommendation on any security mentioned.
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