Investors who take an interest in Orezone Gold Corporation (CVE:ORE) should definitely note that the Independent Chairman of the Board, Michael Halvorson, recently paid CA$1.33 per share to buy CA$133k worth of the stock. Although the purchase only increased their holding by 2.5%, it is still a solid purchase in our view.

View our latest analysis for Orezone Gold

The Last 12 Months Of Insider Transactions At Orezone Gold

In fact, the recent purchase by Independent Chairman of the Board Michael Halvorson was not their only acquisition of Orezone Gold shares this year. They previously made an even bigger purchase of CA$304k worth of shares at a price of CA$1.02 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of CA$1.28. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

In the last twelve months insiders purchased 771.40k shares for CA$814k. On the other hand they divested 275.00k shares, for CA$261k. In the last twelve months there was more buying than selling by Orezone Gold insiders. 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!

Orezone Gold 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 Orezone Gold

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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Orezone Gold insiders own 4.4% of the company, worth about CA$18m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The Orezone Gold Insider Transactions Indicate?

The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Insiders likely see value in Orezone Gold shares, given these transactions (along with notable insider ownership of the company). 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. At Simply Wall St, we've found that Orezone Gold has 3 warning signs (1 is potentially serious!) that deserve your attention before going any further with your analysis.

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. 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.