Orion Group Holdings Insiders Miss 12% Gain After Offloading Stock

Even though Orion Group Holdings, Inc. (NYSE:ORN) stock gained 12% last week, insiders who sold US$360k worth of stock over the past year are probably better off. Selling at an average price of US$9.01, which is higher than the current price, may have been the best move for these insiders because their investment would have been worth less now than when they sold.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

We've discovered 1 warning sign about Orion Group Holdings. View them for free.

The Last 12 Months Of Insider Transactions At Orion Group Holdings

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. The good news is that this large sale was at well above current price of US$5.77. So it is hard to draw any strong conclusion from it. Austin Shanfelter was the only individual insider to sell over the last year.

Happily, we note that in the last year insiders paid US$333k for 52.51k shares. But they sold 40.00k shares for US$360k. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

View our latest analysis for Orion Group Holdings

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Insiders At Orion Group Holdings Have Bought Stock Recently

Over the last quarter, Orion Group Holdings insiders have spent a meaningful amount on shares. Executive VP Edward Earle spent US$55k on stock, and there wasn't any selling. This makes one think the business has some good points.

Does Orion Group Holdings Boast High 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. We usually like to see fairly high levels of insider ownership. It appears that Orion Group Holdings insiders own 5.9% of the company, worth about US$13m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

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

It is good to see the recent insider purchase. However, the longer term transactions are not so encouraging. The more recent transactions are a positive, but Orion Group Holdings insiders haven't shown the sustained enthusiasm that we look for, although they do own a decent number of shares, overall. In short they are likely aligned with shareholders. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Orion Group Holdings.

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.