Those following along with OFG Bancorp (NYSE:OFG) will no doubt be intrigued by the recent purchase of shares by Jorge Colon-Gerena, Independent Director of the company, who spent a stonking US$531k on stock at an average price of US$26.90. Aside from being a solid chunk in its own right, the deft move also saw their holding increase by some 35%.

View our latest analysis for OFG Bancorp

The Last 12 Months Of Insider Transactions At OFG Bancorp

Notably, that recent purchase by Jorge Colon-Gerena is the biggest insider purchase of OFG Bancorp shares that we've seen in the last year. So it's clear an insider wanted to buy, at around the current price, which is US$27.93. That means they have been optimistic about the company in the past, though they may have changed their mind. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the OFG Bancorp insiders decided to buy shares at close to current prices.

In the last twelve months insiders purchased 25.75k shares for US$693k. But insiders sold 11.48k shares worth US$251k. In total, OFG Bancorp insiders bought more than they sold over the last year. 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!

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

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. OFG Bancorp insiders own about US$22m worth of shares. That equates to 1.6% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At OFG Bancorp Tell Us?

The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. Given that insiders also own a fair bit of OFG Bancorp we think they are probably pretty confident of a bright future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 2 warning signs for OFG Bancorp you should be aware of, and 1 of these makes us a bit uncomfortable.

Of course OFG Bancorp may not be the best stock to buy. So you may wish to see this free collection of high quality 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, but not derivative transactions.

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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.