Yahoo Finance As OceanaGold Corporation's (TSE:OGC) market cap increased CA$92m, insiders who bought last year may be reflecting on buying more
Insiders who bought OceanaGold Corporation (TSE:OGC) stock in the last 12 months were richly rewarded last week. The company's market value increased by CA$92m as a result of the stock's 4.7% gain over the same period. Put another way, the original US$387k acquisition is now worth US$468k.
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.
Check out our latest analysis for OceanaGold
The Last 12 Months Of Insider Transactions At OceanaGold
In the last twelve months, the biggest single purchase by an insider was when Independent Non-Executive Director Catherine Gignac bought CA$237k worth of shares at a price of CA$2.37 per share. Even though the purchase was made at a significantly lower price than the recent price (CA$2.88), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
While OceanaGold insiders bought shares during the last year, they didn't sell. 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!
OceanaGold 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.
Does OceanaGold Boast High Insider Ownership?
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. Our data suggests OceanaGold insiders own 0.3% of the company, worth about CA$5.6m. I generally like to see higher levels of ownership.
What Might The Insider Transactions At OceanaGold Tell Us?
It doesn't really mean much that no insider has traded OceanaGold shares in the last quarter. However, our analysis of transactions over the last year is heartening. We'd like to see bigger individual holdings. However, we don't see anything to make us think OceanaGold insiders are doubting the company. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Every company has risks, and we've spotted 1 warning sign for OceanaGold you should know about.
But note: OceanaGold 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, but not derivative transactions.
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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.
