Odin Metals Loses AU$2.2m Market Value But Insiders See Windfall Of AU$146k

Odin Metals Limited (ASX:ODM) insiders who acquired shares over the previous 12 months, can probably afford to ignore the recent 11% decline in the stock price. Reason being, despite the recent loss, insiders original purchase value of AU$289k is now worth AU$435k.

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.

See our latest analysis for Odin Metals

Odin Metals Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when insider Jason Peterson bought AU$239k worth of shares at a price of AU$0.018 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of AU$0.024. 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.

While Odin Metals insiders bought shares during the last year, they didn't sell. The average buy price was around AU$0.016. To my mind it is good that insiders have invested their own money in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart 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 Odin Metals Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 17% of Odin Metals shares, worth about AU$3.1m. 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 Do The Odin Metals Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Odin Metals shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. Overall we don't see anything to make us think Odin Metals insiders are doubting the company, and they do own shares. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Odin Metals. Case in point: We've spotted 5 warning signs for Odin Metals you should be aware of, and 3 of these are a bit concerning.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.