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Don't Ignore The Fact That This Insider Just Sold Some Shares In Orla Mining Ltd. (TSE:OLA)

Simply Wall St

Some Orla Mining Ltd. (TSE:OLA) shareholders may be a little concerned to see that insider Pierre Lassonde recently sold a whopping CA$4.9m worth of stock at a price of CA$1.64 per share. That's a big dump, and it decreased their holding size by 14%, which is notable but not too bad.

Check out our latest analysis for Orla Mining

Orla Mining Insider Transactions Over The Last Year

In fact, the recent sale by Pierre Lassonde was the biggest sale of Orla Mining shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of CA$1.67. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 14% of Pierre Lassonde's stake.

In the last twelve months insiders purchased 100000 shares for CA$103k. On the other hand they divested 3000000 shares, for CA$4.9m. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

TSX:OLA Recent Insider Trading, October 10th 2019

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Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Orla Mining insiders own about CA$55m worth of shares. That equates to 18% 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.

So What Does This Data Suggest About Orla Mining Insiders?

An insider hasn't bought Orla Mining stock in the last three months, but there was some selling. Despite some insider buying, the longer term picture doesn't make us feel much more positive. Insiders own shares, but we're still pretty cautious, given the history of sales. We'd think twice before buying! Of course, the future is what matters most. So if you are interested in Orla Mining, you should check out this free report on analyst forecasts for the company.

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.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.