Insider Spends US$100k Buying More Shares In Orezone Gold

Whilst it may not be a huge deal, we thought it was good to see that the Orezone Gold Corporation (TSE:ORE) President, Patrick Downey, recently bought CA$100k worth of stock, for CA$0.60 per share. Although the purchase is not a big one, increasing their shareholding by only 2.4%, it can be interpreted as a good sign.

Check out our latest analysis for Orezone Gold

Orezone Gold Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Senior VP & General Counsel, Ryan Goodman, for CA$289k worth of shares, at about CA$0.84 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is CA$0.60. So it is hard to draw any strong conclusion from it.

Happily, we note that in the last year insiders paid CA$517k for 800.30k shares. On the other hand they divested 444.26k shares, for CA$370k. In total, Orezone Gold insiders bought more than they sold over the last year. You can see the insider transactions (by companies and individuals) 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!

Orezone Gold 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

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 3.2% of Orezone Gold shares, worth about CA$8.8m, according to our data. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. Whilst better than nothing, we're not overly impressed by these holdings.

So What Do The Orezone Gold Insider Transactions Indicate?

It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Orezone Gold insiders are reasonably well aligned, and optimistic for the future. 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. You'd be interested to know, that we found 2 warning signs for Orezone Gold and we suggest you have a look.

Of course Orezone Gold 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.