In the last year, multiple insiders have substantially increased their holdings of ONEOK, Inc. (NYSE:OKE) stock, indicating that insiders’ optimism about the company’s prospects has increased.
Although we don’t think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
ONEOK Insider Transactions Over The Last Year
The President Pierce Norton made the biggest insider purchase in the last 12 months. That single transaction was for US$1.5m worth of shares at a price of US$60.96 each. So it’s clear an insider wanted to buy, at around the current price, which is US$67.54. That means they have been optimistic about the company in the past, though they may have changed their mind. While we always like to see insider buying, it’s less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. In this case we’re pleased to report that the insider purchases were made at close to current prices.
ONEOK insiders may have bought shares in the last year, but they didn’t sell any. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
ONEOK is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insiders At ONEOK Have Bought Stock Recently
Over the last three months, we’ve seen significant insider buying at ONEOK. Overall, two insiders shelled out US$1.8m for shares in the company — and none sold. This is a positive in our book as it implies some confidence.
Does ONEOK Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. ONEOK insiders own about US$204m worth of shares (which is 0.7% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Does This Data Suggest About ONEOK Insiders?
It is good to see recent purchasing. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest ONEOK insiders are well aligned, and quite possibly think the share price is too low. Looks promising! While we like knowing 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. When we did our research, we found 2 warning signs for ONEOK (1 can’t be ignored!) that we believe deserve your full attention.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.