Odyssey Gold's Market Cap Up AU$4.9m Following Year Of Insider Stock Buying

Insiders who bought Odyssey Gold Limited (ASX:ODY) stock in the last 12 months were richly rewarded last week. The company's market value increased by AU$4.9m as a result of the stock's 15% gain over the same period. As a result, the stock they originally bought for AU$196.2k is now worth AU$337.9k.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

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Odyssey Gold Insider Transactions Over The Last Year

Notably, that recent purchase by Ian Middlemas is the biggest insider purchase of Odyssey Gold shares that we've seen in the last year. We do like to see buying, but this purchase was made at well below the current price of AU$0.031. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

In the last twelve months Odyssey Gold insiders were buying shares, but not selling. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

View our latest analysis for Odyssey Gold

Odyssey Gold is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Odyssey Gold Insiders Bought Stock Recently

Over the last three months, we've seen significant insider buying at Odyssey Gold. Overall, four insiders shelled out AU$196k for shares in the company -- and none sold. This is a positive in our book as it implies some confidence.

Insider Ownership Of Odyssey Gold

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 15% of Odyssey Gold shares, worth about AU$5.4m. 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 Odyssey Gold Insiders?

It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest Odyssey Gold insiders are well aligned, and that they may think the share price is too low. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Odyssey Gold. When we did our research, we found 5 warning signs for Odyssey Gold (2 make us uncomfortable!) that we believe deserve your full attention.

Of course Odyssey Gold 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 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.