Are Insiders Buying Orla Mining Ltd. (TSE:OLA) Stock?

We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So before you buy or sell Orla Mining Ltd. (TSE:OLA), you may well want to know whether insiders have been buying or selling.

Do Insider Transactions Matter?

It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, rules govern insider transactions, and certain disclosures are required.

We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year.'

Check out our latest analysis for Orla Mining

The Last 12 Months Of Insider Transactions At Orla Mining

Pierre Lassonde made the biggest insider purchase in the last 12 months. That single transaction was for CA$3.5m worth of shares at a price of CA$1.75 each. That means that an insider was happy to buy shares at above the current price. Their view may have changed since then, but at least it shows they felt optimistic at the time. That purchase may suggest an expectation of positive returns over the long term.

Over the last year, we can see that insiders have bought 2.98m shares worth CA$4.9m. In total, Orla Mining insiders bought more than they sold over the last year. They paid about CA$1.66 on average. I'd consider this a positive as it suggests insiders see value at around the current price, which is CA$1.07. You can see the insider transactions over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

If you like to buy stocks alongside management, then you might just love this freelist of companies. (Hint: insiders have been buying them).

Insider Ownership of Orla Mining

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. Orla Mining insiders own about CA$35m worth of shares (which is 18% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Orla Mining Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Orla Mining shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Insiders own shares in Orla Mining and we see no evidence to suggest they are worried about the future. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this freereport showing analyst forecasts for its future.

Of course Orla Mining may not be the best stock to buy. So you may wish to see this freecollection of high quality companies.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.

Simply Wall St analyst Simply Wall St and Simply Wall St have no position in any of the companies mentioned. This article 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.