Insiders Give Up US$135k As Origin Materials Stock Drops To US$0.78

Insiders who bought US$333.0k worth of Origin Materials, Inc.'s (NASDAQ:ORGN) stock at an average buy price of US$1.31 over the last year may be disappointed by the recent 21% decrease in the stock. Insiders buy with the expectation to see their investments rise in value over a period of time. However, recent losses have rendered their above investment worth US$198.1k which is not ideal.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for Origin Materials

Origin Materials Insider Transactions Over The Last Year

The insider Karen Richardson made the biggest insider purchase in the last 12 months. That single transaction was for US$200k worth of shares at a price of US$1.37 each. That means that even when the share price was higher than US$0.78 (the recent price), an insider wanted to purchase shares. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

In the last twelve months insiders purchased 253.29k shares for US$333k. On the other hand they divested 4.64k shares, for US$4.6k. In the last twelve months there was more buying than selling by Origin Materials insiders. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Origin Materials is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Origin Materials Insiders Bought Stock Recently

Over the last three months, we've seen a bit of insider buying at Origin Materials. In that period Independent Director Pia Cook spent US$33k on shares. However, Independent Director Pia Cook netted US$4.6k for sales. It is good to see that insiders have been buying, but they did not buy very many shares, in the scheme of things.

Insider Ownership Of Origin Materials

For a common shareholder, it is worth checking how many shares are held by company 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. From our data, it seems that Origin Materials insiders own 7.8% of the company, worth about US$8.9m. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

What Might The Insider Transactions At Origin Materials Tell Us?

Our data shows a little insider buying, but no selling, in the last three months. Overall the buying isn't worth writing home about. On a brighter note, the transactions over the last year are encouraging. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Origin Materials stock. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. When we did our research, we found 5 warning signs for Origin Materials (3 shouldn't be ignored!) that we believe deserve your full attention.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com