This Insider Has Just Sold Shares In Orora

We'd be surprised if Orora Limited (ASX:ORA) shareholders haven't noticed that the CEO, MD & Director, Brian Lowe, recently sold AU$376k worth of stock at AU$2.09 per share. The eyebrow raising move amounted to a reduction of 10% in their holding.

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The Last 12 Months Of Insider Transactions At Orora

Notably, that recent sale by Brian Lowe is the biggest insider sale of Orora shares that we've seen in the last year. That means that an insider was selling shares at below the current price (AU$2.10). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. This single sale was just 10% of Brian Lowe's stake.

In the last twelve months insiders purchased 125.00k shares for AU$232k. But insiders sold 179.80k shares worth AU$376k. 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!

See our latest analysis for Orora

I will like Orora better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insider Ownership Of Orora

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data suggests Orora insiders own 0.2% of the company, worth about AU$5.8m. We consider this fairly low insider ownership.

What Might The Insider Transactions At Orora Tell Us?

An insider sold stock recently, but they haven't been buying. Despite some insider buying, the longer term picture doesn't make us feel much more positive. When you combine this with the relatively low insider ownership, we are very cautious about the stock. We'd certainly practice some caution before buying! 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. Be aware that Orora is showing 4 warning signs in our investment analysis, and 1 of those is potentially serious...

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.