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Insiders who bought Orezone Gold Corporation (TSE:ORE) in the last 12 months may probably not pay attention to the stock's recent 11% drop. Even after accounting for the recent loss, the US$455.5k worth of stock purchased by them is now worth US$752.5k or in other words, their investment continues to give good returns.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
The Last 12 Months Of Insider Transactions At Orezone Gold
Notably, that recent sale by Peter Tam is the biggest insider sale of Orezone Gold shares that we've seen in the last year. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of CA$1.08. So it is hard to draw any strong conclusion from it.
Happily, we note that in the last year insiders paid CA$456k for 696.80k shares. On the other hand they divested 341.00k shares, for CA$387k. In total, Orezone Gold insiders bought more than they sold over the last year. 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!
Check out our latest analysis for Orezone Gold
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.
Insiders At Orezone Gold Have Sold Stock Recently
The last quarter saw substantial insider selling of Orezone Gold shares. Specifically, Executive VP & CFO Peter Tam ditched CA$360k worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.
Insider Ownership Of Orezone Gold
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Orezone Gold insiders own about CA$17m worth of shares. That equates to 3.0% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About Orezone Gold Insiders?
An insider sold Orezone Gold shares recently, but they didn't buy any. In contrast, they appear keener if you look at the last twelve months. We like that insiders own a fair amount of the company. So we're happy enough to look past some selling. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. When we did our research, we found 2 warning signs for Orezone Gold (1 is concerning!) that we believe deserve your full attention.