Ora Banda Mining Insiders Enjoying AU$1.5m Appreciation On AU$1.28m Investment

Ora Banda Mining Limited (ASX:OBM) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 11%, resulting in a AU$43m rise in the company's market capitalisation, translating to a gain of 120% on their initial investment. As a result, their original purchase of AU$1.28m worth of stock is now worth AU$2.81m.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for Ora Banda Mining

The Last 12 Months Of Insider Transactions At Ora Banda Mining

In the last twelve months, the biggest single purchase by an insider was when CEO, MD & Director Luke Creagh bought AU$1m worth of shares at a price of AU$0.11 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of AU$0.25. 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.

In the last twelve months Ora Banda Mining insiders were buying shares, but not selling. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Ora Banda Mining insiders own 11% of the company, worth about AU$47m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About Ora Banda Mining Insiders?

The fact that there have been no Ora Banda Mining insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. Insiders own shares in Ora Banda Mining and we see no evidence to suggest they are worried about the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Ora Banda Mining. To help with this, we've discovered 3 warning signs (2 are concerning!) that you ought to be aware of before buying any shares in Ora Banda Mining.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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 of direct interests only, but not derivative transactions or indirect interests.

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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.