Insiders Enjoy CA$310k Return After Buying Osisko Development Stock

Insiders who bought Osisko Development Corp. (CVE:ODV) in the last 12 months may probably not pay attention to the stock's recent 26% drop. After accounting for the recent loss, the CA$2.59m worth of shares they purchased is now worth CA$2.90m, suggesting a good return on their investment.

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.

View our latest analysis for Osisko Development

Osisko Development Insider Transactions Over The Last Year

The Independent Director Marina Katusa made the biggest insider purchase in the last 12 months. That single transaction was for CA$1.4m worth of shares at a price of CA$2.43 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of CA$2.73. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Over the last year, we can see that insiders have bought 1.06m shares worth CA$2.6m. But insiders sold 27.05k shares worth CA$102k. In the last twelve months there was more buying than selling by Osisko Development insiders. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Osisko Development Insiders Bought Stock Recently

Over the last three months, we've seen significant insider buying at Osisko Development. In total, insiders bought CA$2.6m worth of shares in that time, and we didn't record any sales whatsoever. This could be interpreted as suggesting a positive outlook.

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. From looking at our data, insiders own CA$4.0m worth of Osisko Development stock, about 1.4% of the company. I generally like to see higher levels of ownership.

So What Do The Osisko Development Insider Transactions Indicate?

It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Osisko Development insiders are expecting a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Osisko Development. While conducting our analysis, we found that Osisko Development has 2 warning signs and it would be unwise to ignore them.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

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.