Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of Ora Banda Mining Limited (ASX:OBM), it sends a favourable 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.
The Last 12 Months Of Insider Transactions At Ora Banda Mining
The Non-Executive Chairman Peter Mansell made the biggest insider purchase in the last 12 months. That single transaction was for AU$91k worth of shares at a price of AU$0.05 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of AU$0.06. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
While Ora Banda Mining insiders bought shares during the last year, they didn't sell. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. 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.
Does Ora Banda Mining Boast High 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. Based on our data, Ora Banda Mining insiders have about 4.0% of the stock, worth approximately AU$3.6m. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. We prefer to see high levels of insider ownership.
So What Do The Ora Banda Mining Insider Transactions Indicate?
It doesn't really mean much that no insider has traded Ora Banda Mining shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. The transactions are fine but it'd be more encouraging if Ora Banda Mining insiders bought more shares in the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Ora Banda Mining. For example, Ora Banda Mining has 4 warning signs (and 1 which is a bit concerning) we think you should know about.
Of course Ora Banda Mining 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.
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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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