Insiders who bought OptimizeRx Corporation (NASDAQ:OPRX) in the last 12 months may probably not pay attention to the stock's recent 11% drop. After accounting for the recent loss, the US$2.54m worth of shares they purchased is now worth US$6.41m, suggesting a good return on their investment.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

OptimizeRx Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Independent Director James Lang for US$2.4m worth of shares, at about US$7.60 per share. Even though the purchase was made at a significantly lower price than the recent price (US$18.78), 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.

Happily, we note that in the last year insiders paid US$2.5m for 341.41k shares. But they sold 11.12k shares for US$194k. Overall, OptimizeRx insiders were net buyers during the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

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).

OptimizeRx Insiders Are Selling The Stock

Over the last three months, we've seen significant insider selling at OptimizeRx. Specifically, Independent Director Patrick Spangler ditched US$194k 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

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Insiders own 15% of OptimizeRx shares, worth about US$54m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The OptimizeRx Insider Transactions Indicate?

An insider sold stock recently, but they haven't been buying. But we take heart from prior transactions. And insiders do own shares. So we're not overly bothered by recent selling. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company.

But note: OptimizeRx may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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.

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.