Favorable turn of events for Ora Gold Limited (ASX:OAU) insiders who've lost AU$16k to date on a AU$1.8m purchase
Insiders who bought AU$1.8m worth of Ora Gold Limited (ASX:OAU) stock in the last year have seen some of their losses recouped as the stock gained 20% last week. The purchase, however, has proven to be a pricey bet, with losses currently totalling AU$16k.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
View our latest analysis for Ora Gold
The Last 12 Months Of Insider Transactions At Ora Gold
In the last twelve months, the biggest single purchase by an insider was when insider Philip Crabb bought AU$1.8m worth of shares at a price of AU$0.003 per share. That means that an insider was happy to buy shares at around the current price of AU$0.003. That means they have been optimistic about the company in the past, though they may have changed their mind. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. In this case we're pleased to report that the insider purchases were made at close to current prices.
In the last twelve months Ora Gold insiders were buying shares, but not selling. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
Ora Gold is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Ora Gold Insiders Bought Stock Recently
Over the last three months, we've seen significant insider buying at Ora Gold. insider Philip Crabb spent AU$1.8m on stock, and there wasn't any selling. This makes one think the business has some good points.
Does Ora Gold Boast High Insider Ownership?
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with 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. Ora Gold insiders own about AU$2.6m worth of shares. That equates to 22% 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 Ora Gold Tell Us?
It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Insiders likely see value in Ora Gold shares, given these transactions (along with notable insider ownership of the company). 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 6 warning signs for Ora Gold you should know about.
But note: Ora Gold may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.
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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.
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