Insider Traders Lose AU$134k As Odyssey Gold Drops

The recent 11% drop in Odyssey Gold Limited's (ASX:ODY) stock could come as a blow to insiders who purchased AU$264.2k worth of stock at an average buy price of AU$0.049 over the past 12 months. Insiders buy with the expectation to see their investments rise in value over a period of time. However, recent losses have rendered their above investment worth AU$130.5k which is not ideal.

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.

View our latest analysis for Odyssey Gold

Odyssey Gold Insider Transactions Over The Last Year

The insider Gregory Howe made the biggest insider purchase in the last 12 months. That single transaction was for AU$264k worth of shares at a price of AU$0.049 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$0.024). 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. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. The only individual insider to buy over the last year was Gregory Howe.

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!

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.

Insider Ownership Of Odyssey Gold

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Insiders own 23% of Odyssey Gold shares, worth about AU$4.5m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Odyssey Gold Insiders?

It doesn't really mean much that no insider has traded Odyssey Gold shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. Insiders own shares in Odyssey Gold and we see no evidence to suggest they are worried about the future. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. When we did our research, we found 4 warning signs for Odyssey Gold (2 are a bit concerning!) that we believe deserve your full attention.

But note: Odyssey Gold may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.