Multiple insiders secured a larger position in Orogen Royalties Inc. (CVE:OGN) shares over the last 12 months. This is reassuring as this suggests that insiders have increased optimism about the company's prospects.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
Orogen Royalties Insider Transactions Over The Last Year
The Independent Director Roland Butler made the biggest insider purchase in the last 12 months. That single transaction was for CA$1.1m worth of shares at a price of CA$0.47 each. That means that even when the share price was higher than CA$0.40 (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. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
While Orogen Royalties insiders bought shares during the last year, they didn't sell. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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).
Insider Ownership Of Orogen Royalties
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, Orogen Royalties insiders have about 4.4% of the stock, worth approximately CA$3.1m. We consider this fairly low insider ownership.
So What Does This Data Suggest About Orogen Royalties Insiders?
The fact that there have been no Orogen Royalties insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. We'd like to see bigger individual holdings. However, we don't see anything to make us think Orogen Royalties insiders are doubting the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Orogen Royalties. For example, Orogen Royalties has 2 warning signs (and 1 which shouldn't be ignored) we think you should know about.
Of course Orogen Royalties 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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