Yahoo Finance Pleasing Signs As A Number Of Insiders Buy Orion Group Holdings Stock
Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of Orion Group Holdings, Inc. (NYSE:ORN), that sends out a positive message to the company's shareholders.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for Orion Group Holdings
Orion Group Holdings Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the Independent Chairman, Austin Shanfelter, sold US$146k worth of shares at a price of US$4.86 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$8.54. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was only 6.0% of Austin Shanfelter's holding. Austin Shanfelter was the only individual insider to sell over the last year.
In the last twelve months insiders purchased 57.57k shares for US$347k. But insiders sold 60.00k shares worth US$288k. Overall, Orion Group Holdings insiders were net buyers during the last year. The average buy price was around US$6.03. We don't deny that it is nice to see insiders buying stock in the company. However, we do note that they were buying at significantly lower prices than today's share price. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
Orion Group Holdings is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Orion Group Holdings Insiders Bought Stock Recently
It's good to see that Orion Group Holdings insiders have made notable investments in the company's shares. Overall, five insiders shelled out US$250k for shares in the company -- and none sold. That shows some optimism about the company's future.
Insider Ownership
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Orion Group Holdings insiders own about US$30m worth of shares. That equates to 11% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Does This Data Suggest About Orion Group Holdings Insiders?
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. When combined with notable insider ownership, these factors suggest Orion Group Holdings insiders are well aligned, and that they may think the share price is too low. 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 example, Orion Group Holdings has 3 warning signs (and 1 which makes us a bit uncomfortable) we think you should know about.
Of course Orion Group Holdings 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 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.
