Have Orminex Limited (ASX:ONX) Insiders Been Selling Their Stock? – Simply Wall St

We’d be surprised if Orminex Limited (ASX:ONX) shareholders haven’t noticed that an insider, Daryl Henthorn, recently sold AU$435k worth of stock at AU$0.029 per share. The eyebrow raising move amounted to a reduction of 39% in their holding.

View our latest analysis for Orminex

Orminex Insider Transactions Over The Last Year

In fact, the recent sale by Daryl Henthorn was the biggest sale of Orminex shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was below the current price of AU$0.033, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. While insider selling is not a positive sign, we can’t be sure if it does mean insiders think the shares are fully valued, so it’s only a weak sign. We note that the biggest single sale was only 39%of Daryl Henthorn’s holding.

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!

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ASX:ONX Insider Trading Volume March 27th 2021

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Does Orminex Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it’s a good sign if insiders own a significant number of shares in the company. It appears that Orminex insiders own 36% of the company, worth about AU$6.5m. 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 Orminex Tell Us?

An insider sold stock recently, but they haven’t been buying. Zooming out, the longer term picture doesn’t give us much comfort. Insider ownership isn’t particularly high, so this analysis makes us cautious about the company. We’d practice some caution before buying! 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 instance, we’ve identified 5 warning signs for Orminex (2 are concerning) you should be aware of.

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.

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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. 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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