Yahoo Finance Independent Chairman of the Board Michael Halvorson Just Bought 6.7% More Shares In Orezone Gold Corporation (CVE:ORE)
Investors who take an interest in Orezone Gold Corporation (CVE:ORE) should definitely note that the Independent Chairman of the Board, Michael Halvorson, recently paid CA$1.01 per share to buy CA$304k worth of the stock. Although the purchase only increased their holding by 6.7%, it is still a solid purchase in our view.
View our latest analysis for Orezone Gold
The Last 12 Months Of Insider Transactions At Orezone Gold
Notably, that recent purchase by Michael Halvorson is the biggest insider purchase of Orezone Gold shares that we've seen in the last year. That means that an insider was happy to buy shares at above the current price of CA$0.95. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
Happily, we note that in the last year insiders paid CA$1.4m for 2.20m shares. On the other hand they divested 275.00k shares, for CA$261k. In total, Orezone Gold insiders bought more than they sold over the last year. The average buy price was around CA$0.64. We don't deny that it is nice to see insiders buying stock in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. 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!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
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. It appears that Orezone Gold insiders own 5.7% of the company, worth about CA$15m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At Orezone Gold Tell Us?
The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest Orezone Gold insiders are well aligned, and that they may think the share price is too low. 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. In terms of investment risks, we've identified 1 warning sign with Orezone Gold and understanding it should be part of your investment process.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.
This article by Simply Wall St is general in nature. 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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