Bullish Orion Minerals Insider Buying Worth AU$1.28m Yet To Pay Off

The recent 12% drop in Orion Minerals Limited's (ASX:ORN) stock could come as a blow to insiders who purchased AU$1.28m worth of stock at an average buy price of AU$0.019 over the past 12 months. Insiders purchase with the hope of seeing their investments increase in value over time. However, due to recent losses, their initial investment is now only worth AU$1.02m, which is not great.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for Orion Minerals

Orion Minerals Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when insider Philip Kotze bought AU$1.2m worth of shares at a price of AU$0.019 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$0.015). Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

Happily, we note that in the last year insiders paid AU$1.3m for 67.76m shares. On the other hand they divested 63.00m shares, for AU$1.2m. In the last twelve months there was more buying than selling by Orion Minerals insiders. 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!

Orion Minerals is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership

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. Orion Minerals insiders own about AU$18m worth of shares. That equates to 20% of the company. 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 Orion Minerals Insiders?

It doesn't really mean much that no insider has traded Orion Minerals shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. Insiders do have a stake in Orion Minerals and their transactions don't cause us concern. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Orion Minerals. Every company has risks, and we've spotted 6 warning signs for Orion Minerals (of which 4 are concerning!) you should know about.

Of course Orion Minerals 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.

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