Yahoo Finance Read This Before Selling Orex Minerals Inc. (CVE:REX) Shares
We often see insiders buying up shares in companies that perform well over the long term. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So shareholders might well want to know whether insiders have been buying or selling shares in Orex Minerals Inc. (CVE:REX).
What Is Insider Buying?
It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, most countries require that the company discloses such transactions to the market.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year.
Check out our latest analysis for Orex Minerals
The Last 12 Months Of Insider Transactions At Orex Minerals
Over the last year, we can see that the biggest insider purchase was by President Gary Cope for CA$200k worth of shares, at about CA$0.10 per share. That means that even when the share price was higher than CA$0.085 (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. In our view, the price an insider pays for shares is very important. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. The only individual insider to buy over the last year was Gary Cope. Notably Gary Cope was also the biggest seller.
Gary Cope bought a total of 2.76m shares over the year at an average price of CA$0.099. The chart below shows insider transactions (by individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Orex Minerals is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Orex Minerals Insiders Bought Stock Recently
At Orex Minerals,over the last quarter, we have observed quite a lot more insider buying than insider selling. In total, President Gary Cope bought CA$274k worth of shares in that time. On the other hand, President Gary Cope netted CA$100k by selling. The buying outweighs the selling, which suggests that insiders may believe the company will do well in the future.
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. We usually like to see fairly high levels of insider ownership. It appears that Orex Minerals insiders own 28% of the company, worth about CA$2.9m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Do The Orex Minerals Insider Transactions Indicate?
It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest Orex Minerals insiders are well aligned, and that they may think the share price is too low. I like to dive deeper into how a company has performed in the past. You can find historic revenue and earnings in this detailed graph.
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, but not derivative transactions.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.
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