Yahoo Finance Great news for Orbit Garant Drilling Inc. (TSE:OGD): Insiders acquired stock in large numbers last year
Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of Orbit Garant Drilling Inc. (TSE:OGD), it sends a favourable message to the company's shareholders.
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.
Check out our latest analysis for Orbit Garant Drilling
Orbit Garant Drilling Insider Transactions Over The Last Year
The President Eric Alexandre made the biggest insider purchase in the last 12 months. That single transaction was for CA$552k worth of shares at a price of CA$1.02 each. That means that an insider was happy to buy shares at above the current price of CA$0.99. It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
In the last twelve months insiders purchased 572.78k shares for CA$579k. But they sold 114.00k shares for CA$99k. Overall, Orbit Garant Drilling 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. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Orbit Garant Drilling is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership of Orbit Garant Drilling
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. From looking at our data, insiders own CA$1.6m worth of Orbit Garant Drilling stock, about 4.3% of the company. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. I generally like to see higher levels of ownership.
So What Do The Orbit Garant Drilling Insider Transactions Indicate?
It doesn't really mean much that no insider has traded Orbit Garant Drilling shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Orbit Garant Drilling stock. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Every company has risks, and we've spotted 3 warning signs for Orbit Garant Drilling (of which 1 is concerning!) you should know about.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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, but not derivative transactions.
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.
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