Market Overview

Insider Buys Oaktree Specialty Lending Shares

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A Form 4 filing filed with the SEC on Friday, September 4 showed that Ruben Richard bought 5,000 shares of Oaktree Specialty Lending Inc (NASDAQ:OCSL) at $4.94 on Wednesday, Sep 02, and bought 2,500 shares at $4.97 on Thursday, Sep 03.The transaction moved the executive's stake in Oaktree Specialty Lending to 42,250 shares. Shares of Oaktree Specialty Lending fell by 0.90% from the previous closing price.

Why Insider Transactions Are Important?

Insider transactions shouldn't be used primarily to make an investing decision, however an insider transaction can be an important factor in the investing decision.

When an insider buys stock after an important sell off, that can indicate the insider's faith in the success of the organization. Henceforth, if the stock is bought at new highs, it might be because the insider feels that the stock is not overvalued. Conversely, insiders who are selling stock at new lows can potentially indicate some kind of capitulation moment. Insiders selling at new highs can indicate that exec wants to "take some profit" and "lock in a gain."

Important Transaction Codes

Investors prefer focusing on transactions which take place in the open market, indicated in the Form 4 with codes P for purchase and S for sale. An open-market transaction means the insider went into the market of their own volition and made an active decision about the potential path for a company and its stock moving forward.

Transaction codes other than P or S are often viewed with less conviction as they are often not tied to a decision by the exec. As an example, transaction code C indicates the conversion of an option. Transaction code A indicates the insider may have been forced to sell shares in order to receive compensation the exec was promised upon being hired by a company.

 

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