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Market Overview

Insider Sells Omnichannel Acquisition Shares

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A Form 4 filing filed with the SEC on Monday, January 25 showed that Glazer Capital, Llc sold 945 shares of Omnichannel Acquisition Corp (NYSE:OCA) at $11.20 on Thursday, Jan 21, and sold 20,000 shares at $11.20 on Friday, Jan 22.The transaction moved the executive's stake in Omnichannel Acquisition to 2,323,554 shares. Shares of Omnichannel Acquisition rose by 1.3% from the previous closing price.

Why Insider Transactions Are Important?

While transactions from an insider shouldn't be used as the sole item to make an investment or trading decision, an insider buying or selling stock in their company can be a good added factor that leads to more conviction in a decision.

Insiders buying stock after a notable sell off can indicate an insider's long-term belief in the success of the company; insiders buying stock at new highs can be an indication the exec doesn't feel the stock is overvalued. Insiders who sell stock at new lows could be anticipating some capitulation moment. If the insider sells at new highs, it could point to the intention 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. If the transaction was an open-market transaction, that means that the insider made a concious decision for the company's 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.

Price Action

 

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