Origin Energy Sees Insider Stock Selling

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.

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.

We've discovered 2 warning signs about Origin Energy. View them for free.

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$1.9m worth of shares at a price of AU$9.94 per share. That means that even when the share price was below the current price of AU$10.32, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 9.9% of Frank Calabria's holding. Frank Calabria was the only individual insider to sell over the last year.

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!

Check out our latest analysis for Origin Energy

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Does Origin Energy Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Origin Energy insiders own about AU$35m worth of shares. That equates to 0.2% 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.

What Might The Insider Transactions At Origin Energy Tell Us?

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. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Origin Energy. When we did our research, we found 2 warning signs for Origin Energy (1 is a bit concerning!) that we believe deserve your full attention.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.