Have Orla Mining Insiders Been Selling Stock?

Anyone interested in Orla Mining Ltd. (TSE:OLA) should probably be aware that the Independent Non-Executive Director, Timothy Haldane, recently divested CA$246k worth of shares in the company, at an average price of CA$4.91 each. The eyebrow raising move amounted to a reduction of 21% in their holding.

Check out our latest analysis for Orla Mining

The Last 12 Months Of Insider Transactions At Orla Mining

Over the last year, we can see that the biggest insider sale was by the Independent Non-Executive Director, Jean Robitaille, for CA$1.6m worth of shares, at about CA$6.48 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is CA$5.13. So it is hard to draw any strong conclusion from it.

Happily, we note that in the last year insiders paid CA$387k for 94.96k shares. But insiders sold 494.50k shares worth CA$3.1m. Over the last year we saw more insider selling of Orla Mining shares, than buying. 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!

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Orla Mining insiders own 11% of the company, currently worth about CA$184m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The Orla Mining Insider Transactions Indicate?

An insider sold stock recently, but they haven't been buying. Zooming out, the longer term picture doesn't give us much comfort. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. 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. In terms of investment risks, we've identified 2 warning signs with Orla Mining and understanding them should be part of your investment process.

Of course Orla Mining 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.