Need To Know: OceanaGold Corporation (TSE:OGC) Insiders Have Been Buying Shares

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·4 min read
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It is not uncommon to see companies perform well in the years after insiders buy shares. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So we'll take a look at whether insiders have been buying or selling shares in OceanaGold Corporation (TSE:OGC).

What Is Insider Selling?

It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, such insiders must disclose their trading activities, and not trade on inside information.

We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But equally, we would consider it foolish to ignore insider transactions altogether. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise'.

Check out our latest analysis for OceanaGold

OceanaGold Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Independent Non-Executive Director Craig Nelsen for CA$188k worth of shares, at about CA$1.71 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of CA$2.33. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

OceanaGold insiders may have bought shares in the last year, but they didn't sell any. 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!

insider-trading-volume
insider-trading-volume

OceanaGold is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

OceanaGold Insiders Bought Stock Recently

It's good to see that OceanaGold insiders have made notable investments in the company's shares. Not only was there no selling that we can see, but they collectively bought CA$355k worth of shares. This could be interpreted as suggesting a positive outlook.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data suggests OceanaGold insiders own 0.3% of the company, worth about CA$5.3m. I generally like to see higher levels of ownership.

So What Does This Data Suggest About OceanaGold Insiders?

The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that OceanaGold insiders are reasonably well aligned, and optimistic for the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing OceanaGold. You'd be interested to know, that we found 2 warning signs for OceanaGold and we suggest you have a look.

But note: OceanaGold 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.

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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