Bullish OceanaGold Corporation (TSE:OGC) insiders filled their treasuries with US$714k worth of stock over last year
It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in OceanaGold Corporation's (TSE:OGC) case, it's fantastic news for shareholders.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
Check out our latest analysis for OceanaGold
The Last 12 Months Of Insider Transactions At OceanaGold
In the last twelve months, the biggest single purchase by an insider was when Independent Non-Executive Director Catherine Gignac bought CA$237k worth of shares at a price of CA$2.37 per share. That means that even when the share price was higher than CA$2.32 (the recent price), an insider wanted to purchase shares. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. 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.
OceanaGold insiders may have bought shares in the last year, but they didn't sell any. Their average price was about CA$1.98. 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. The chart below shows insider transactions (by companies and individuals) over the last year. 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).
Insiders at OceanaGold Have Bought Stock Recently
Over the last three months, we've seen significant insider buying at OceanaGold. In total, insiders bought CA$360k worth of shares in that time, and we didn't record any sales whatsoever. This makes one think the business has some good points.
Insider Ownership of OceanaGold
Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Based on our data, OceanaGold insiders have about 0.3% of the stock, worth approximately CA$4.6m. We consider this fairly low insider ownership.
What Might The Insider Transactions At OceanaGold Tell Us?
The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that OceanaGold insiders are expecting a bright future. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Case in point: We've spotted 1 warning sign for OceanaGold you should be aware of.
Of course OceanaGold 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.
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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