Australia markets open in 4 hours 49 minutes
  • ALL ORDS

    7,599.90
    -137.00 (-1.77%)
     
  • AUD/USD

    0.7120
    -0.0070 (-0.97%)
     
  • ASX 200

    7,279.30
    -128.00 (-1.73%)
     
  • OIL

    68.15
    -10.24 (-13.06%)
     
  • GOLD

    1,788.10
    +1.20 (+0.07%)
     
  • BTC-AUD

    75,778.19
    -1,614.64 (-2.09%)
     
  • CMC Crypto 200

    1,365.60
    -89.82 (-6.17%)
     

Who Has Been Buying Ora Banda Mining Limited (ASX:OBM) Shares?

  • Oops!
    Something went wrong.
    Please try again later.
·3-min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

It is not uncommon to see companies perform well in the years after insiders buy shares. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So we'll take a look at whether insiders have been buying or selling shares in Ora Banda Mining Limited (ASX:OBM).

What Is Insider Selling?

It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, most countries require that the company discloses such transactions to the market.

We don't think shareholders should simply follow insider transactions. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.

Check out our latest analysis for Ora Banda Mining

The Last 12 Months Of Insider Transactions At Ora Banda Mining

Over the last year, we can see that the biggest insider purchase was by Non-Executive Chairman Peter Mansell for AU$99k worth of shares, at about AU$0.25 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$0.21). 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 when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. The only individual insider to buy over the last year was Peter Mansell.

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!

insider-trading-volume
insider-trading-volume

Ora Banda Mining is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Does Ora Banda Mining 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. A high insider ownership often makes company leadership more mindful of shareholder interests. From our data, it seems that Ora Banda Mining insiders own 5.9% of the company, worth about AU$10m. However, it's possible that insiders might have an indirect interest through a more complex structure. Whilst better than nothing, we're not overly impressed by these holdings.

So What Does This Data Suggest About Ora Banda Mining Insiders?

It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Given that insiders also own a fair bit of Ora Banda Mining we think they are probably pretty confident of a bright future. While we like knowing 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. For instance, we've identified 4 warning signs for Ora Banda Mining (1 is significant) you should be aware of.

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, but not derivative transactions.

This article by Simply Wall St is general in nature. 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 (at) simplywallst.com.

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting