Insider Sellers Might Regret Selling Orion Group Holdings Shares at a Lower Price Than Current Market Value

Despite the fact that Orion Group Holdings, Inc.'s (NYSE:ORN) value has dropped 10% in the last week insiders who sold US$506k worth of stock in the past 12 months have had less success. Insiders would probably have been better off holding on to their shares given that the average selling price of US$7.23 is still lower than the current share price.

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.

See our latest analysis for Orion Group Holdings

Orion Group Holdings Insider Transactions Over The Last Year

The Independent Chairman, Austin Shanfelter, made the biggest insider sale in the last 12 months. That single transaction was for US$360k worth of shares at a price of US$9.01 each. 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 US$5.39. So it may not shed much light on insider confidence at current levels. Austin Shanfelter was the only individual insider to sell over the last year.

Happily, we note that in the last year insiders paid US$467k for 69.52k shares. On the other hand they divested 70.00k shares, for US$506k. Austin Shanfelter ditched 70.00k shares over the year. The average price per share was US$7.23. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Orion Group Holdings Insiders Bought Stock Recently

It's good to see that Orion Group Holdings insiders have made notable investments in the company's shares. In total, insiders bought US$217k worth of shares in that time, and we didn't record any sales whatsoever. That shows some optimism about the company's future.

Insider Ownership Of Orion Group Holdings

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 9.0% of Orion Group Holdings shares, worth about US$19m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About Orion Group Holdings Insiders?

It is good to see recent purchasing. On the other hand the transaction history, over the last year, isn't so positive. While recent transactions indicate confidence in Orion Group Holdings, insiders don't own enough of the company to overcome our cautiousness about the longer term transactions. In short they are likely aligned with shareholders. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Orion Group Holdings. While conducting our analysis, we found that Orion Group Holdings has 1 warning sign and it would be unwise to ignore this.

But note: Orion Group Holdings may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.