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Insider Buying: The Ora Banda Mining Limited (ASX:OBM) Non-Executive Director Just Bought 12% More Shares

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Whilst it may not be a huge deal, we thought it was good to see that the Ora Banda Mining Limited (ASX:OBM) Non-Executive Director, David Quinlivan, recently bought AU$100k worth of stock, for AU$0.17 per share. That purchase might not be huge but it did increase their holding by 12%.

View our latest analysis for Ora Banda Mining

The Last 12 Months Of Insider Transactions At Ora Banda Mining

In fact, the recent purchase by David Quinlivan was the biggest purchase of Ora Banda Mining shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was higher than AU$0.095 (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. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

While Ora Banda Mining insiders bought shares during the last year, they didn't sell. They paid about AU$0.19 on average. These transactions suggest that insiders have considered the current price attractive. 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!

insider-trading-volume
insider-trading-volume

Ora Banda Mining is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership of Ora Banda Mining

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Insiders own 5.4% of Ora Banda Mining shares, worth about AU$5.0m, according to our data. 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!

So What Do The Ora Banda Mining Insider Transactions Indicate?

It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Ora Banda Mining insiders are expecting 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. Case in point: We've spotted 5 warning signs for Ora Banda Mining you should be aware of, and 1 of them is a bit unpleasant.

Of course Ora Banda Mining may not be the best stock to buy. So you may wish to see this free collection of high quality 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, but not derivative transactions.

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 (at) simplywallst.com.

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