Origin Energy Insider Lowered Holding By 13% During Last Year

From what we can see, insiders were net sellers in Origin Energy Limited's (ASX:ORG ) during the past 12 months. That is, insiders sold the stock in greater numbers than they purchased it.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Origin Energy

The Last 12 Months Of Insider Transactions At Origin Energy

In the last twelve months, the biggest single sale by an insider was when the MD, CEO & Executive Director, Frank Calabria, sold AU$2.0m worth of shares at a price of AU$9.60 per share. That means that even when the share price was below the current price of AU$11.08, an insider wanted to cash in some shares. 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. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 13% of Frank Calabria's holding. Frank Calabria was the only individual insider to sell shares in the last twelve months.

Frank Calabria ditched 406.00k shares over the year. The average price per share was AU$9.76. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. It appears that Origin Energy insiders own 0.2% of the company, worth about AU$37m. 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 Origin Energy Insiders?

The fact that there have been no Origin Energy insider transactions recently certainly doesn't bother us. We don't take much encouragement from the transactions by Origin Energy insiders. But we do like the fact that insiders own a fair chunk of the company. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Be aware that Origin Energy is showing 3 warning signs in our investment analysis, and 1 of those doesn't sit too well with us...

Of course Origin Energy 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.