When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Orion S.A.'s (NYSE:OEC) instance, it's good news for shareholders.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for Orion

The Last 12 Months Of Insider Transactions At Orion

In the last twelve months, the biggest single purchase by an insider was when CEO & Executive Director Corning Painter bought US$324k worth of shares at a price of US$21.59 per share. That means that an insider was happy to buy shares at around the current price of US$22.24. Of course they may have changed their mind. But this suggests they are optimistic. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. Happily, the Orion insiders decided to buy shares at close to current prices.

Over the last year, we can see that insiders have bought 24.00k shares worth US$536k. But insiders sold 8.31k shares worth US$201k. Overall, Orion insiders were net buyers during the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Orion Insiders Bought Stock Recently

There was some insider buying at Orion over the last quarter. They bought US$212k worth in that time. On the other hand, Senior VP of Global Specialty Carbon Black & EMEA Region Sandra Niewiem sold US$201k worth of shares. While it's good to see the insider buying, the net amount bought isn't enough for us to gain much confidence from it.

Insider Ownership Of Orion

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Orion insiders own about US$29m worth of shares. That equates to 2.4% 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.

What Might The Insider Transactions At Orion Tell Us?

Our data shows a little insider buying, but no selling, in the last three months. The net investment is not enough to encourage us much. However, our analysis of transactions over the last year is heartening. Insiders do have a stake in Orion and their transactions don't cause us concern. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Orion. Every company has risks, and we've spotted 1 warning sign for Orion you should know about.

But note: Orion 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 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.

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