Yahoo Finance Positive Signs As Multiple Insiders Buy Orezone Gold Stock
Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of Orezone Gold Corporation (TSE:ORE), that sends out a positive message to the company's shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
View our latest analysis for Orezone Gold
Orezone Gold Insider Transactions Over The Last Year
The Independent Director, Joseph Conway, made the biggest insider sale in the last 12 months. That single transaction was for CA$200k worth of shares at a price of CA$1.27 each. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (CA$0.88). So it is hard to draw any strong conclusion from it. The only individual insider seller over the last year was Joseph Conway.
Happily, we note that in the last year insiders paid CA$344k for 343.50k shares. On the other hand they divested 198.00k shares, for CA$252k. In the last twelve months there was more buying than selling by Orezone Gold insiders. The average buy price was around CA$1.00. These transactions suggest that insiders have considered the current price attractive. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Orezone Gold insiders own about CA$17m worth of shares. That equates to 5.3% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At Orezone Gold Tell Us?
It doesn't really mean much that no insider has traded Orezone Gold shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. Insiders own shares in Orezone Gold and we see no evidence to suggest they are worried about the 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. In terms of investment risks, we've identified 2 warning signs with Orezone Gold and understanding these should be part of your investment process.
Of course Orezone Gold 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 of direct interests only, but not derivative transactions or indirect interests.
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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.
