CEO & Director of Orion Energy Systems Sally Washlow Buys 83% More Shares

Investors who take an interest in Orion Energy Systems, Inc. (NASDAQ:OESX) should definitely note that the CEO & Director, Sally Washlow, recently paid US$14.17 per share to buy US$300k worth of the stock. That certainly has us anticipating the best, especially since they thusly increased their own holding by 83%, potentially signalling some real optimism.

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Orion Energy Systems Insider Transactions Over The Last Year

Notably, that recent purchase by Sally Washlow is the biggest insider purchase of Orion Energy Systems shares that we've seen in the last year. So it's clear an insider wanted to buy, at around the current price, which is US$14.84. That means they have been optimistic about the company in the past, though they may have changed their mind. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for Orion Energy Systems share holders is that insiders were buying at near the current price.

Orion Energy Systems insiders may have bought shares in the last year, but they didn't sell any. They paid about US$12.68 on average. We don't deny that it is nice to see insiders buying stock in the company. However, we do note that they were buying at significantly lower prices than today's share price. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

View our latest analysis for Orion Energy Systems

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

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. It appears that Orion Energy Systems insiders own 19% of the company, worth about US$10.0m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Orion Energy Systems Tell Us?

It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Insiders likely see value in Orion Energy Systems shares, given these transactions (along with notable insider ownership of 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 Orion Energy Systems and understanding them should be part of your investment process.

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.