Oriole Resources Insiders May Regret Not Buying More, Market Cap Hits UK£16m

Oriole Resources PLC (LON:ORR) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 98% resulting in a UK£7.7m addition to the company’s market value. In other words, the original UK£122.4k purchase is now worth UK£207.7k.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

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The Last 12 Months Of Insider Transactions At Oriole Resources

In the last twelve months, the biggest single purchase by an insider was when Independent Non-Executive Chair Eileen Carr bought UK£40k worth of shares at a price of UK£0.003 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of UK£0.004. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

Oriole Resources insiders may have bought shares in the last year, but they didn't sell any. They paid about UK£0.0024 on average. It is certainly positive to see that insiders have invested their own money in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. 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!

Check out our latest analysis for Oriole Resources

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Oriole Resources Insiders Bought Stock Recently

It's good to see that Oriole Resources insiders have made notable investments in the company's shares. Not only was there no selling that we can see, but they collectively bought UK£41k worth of shares. This is a positive in our book as it implies some confidence.

Does Oriole Resources Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with 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. Our data indicates that Oriole Resources insiders own about UK£1.1m worth of shares (which is 7.1% of the company). We do generally prefer see higher levels of insider ownership.

So What Do The Oriole Resources Insider Transactions Indicate?

We note a that there has been a bit of insider buying recently (but no selling). That said, the purchases were not large. But insiders have shown more of an appetite for the stock, over the last year. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Oriole Resources stock. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we've found that Oriole Resources has 5 warning signs (4 make us uncomfortable!) that deserve your attention before going any further with your analysis.

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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.