Whilst it may not be a huge deal,rahab and the spies game we thought it was good to see that the

Orezone Gold Corporation

(

CVE:ORE

) President, Patrick Downey, recently bought CA$108k worth of stock, for CA$0.54 per share. That might not be a big purchase but it only increased their holding by 4.7%, and could be interpreted as a good sign.

Check out our latest analysis for Orezone Gold

Orezone Gold Insider Transactions Over The Last Year

In fact, the recent purchase by President Patrick Downey was not their only acquisition of Orezone Gold shares this year. They previously made an even bigger purchase of CA$222k worth of shares at a price of CA$0.48 per share. That means that even when the share price was higher than CA$0.47 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

While Orezone Gold insiders bought shares last year, they didn't sell. Their average price was about CA$0.55. These transactions suggest that insiders have considered the current price attractive. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

TSXV:ORE Recent Insider Trading, February 2nd 2020

Orezone Gold is not the only stock insiders are buying. So take a peek at this

free

list of growing companies with insider buying.

Insider Ownership of Orezone Gold

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data indicates that Orezone Gold insiders own about CA$7.5m worth of shares (which is 6.3% of the company). We do generally prefer see higher levels of insider ownership.

What Might The Insider Transactions At Orezone Gold Tell Us?

The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Orezone Gold insiders are reasonably well aligned, and optimistic for the future. Along with insider transactions, I recommend checking if Orezone Gold is growing revenue. This free chart of

historic revenue and earnings should make that easy

.

Story continues

But note:

Orezone Gold 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, but not derivative transactions.

If you spot an error that warrants correction, please contact the editor at

[email protected]

. 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.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.

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