Oceanic Iron Ore Insiders Placed Bullish Bets Worth CA$4.82m

In the last year, multiple insiders have substantially increased their holdings of Oceanic Iron Ore Corp. (CVE:FEO) stock, indicating that insiders’ optimism about the company’s prospects has increased.

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.

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The Last 12 Months Of Insider Transactions At Oceanic Iron Ore

The insider Frank Giustra made the biggest insider purchase in the last 12 months. That single transaction was for CA$3.0m worth of shares at a price of CA$0.75 each. So it’s clear an insider wanted to buy, even at a higher price than the current share price (being CA$0.61). It’s very possible they regret the purchase, but it’s more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. 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.

Happily, we note that in the last year insiders paid CA$4.8m for 8.18m shares. But insiders sold 210.00k shares worth CA$200k. In total, Oceanic Iron Ore insiders bought more than they sold over the last year. The average buy price was around CA$0.59. These transactions show that insiders have confidence to invest their own money in the stock, albeit at slightly below the recent price. 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!

View our latest analysis for Oceanic Iron Ore

Oceanic Iron Ore is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Insiders At Oceanic Iron Ore Have Bought Stock Recently

Over the last three months, we’ve seen significant insider buying at Oceanic Iron Ore. We can see that Director Jeremy Langford paid CA$100k for shares in the company. No-one sold. That shows some optimism about the company’s future.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Insiders own 23% of Oceanic Iron Ore shares, worth about CA$36m. 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 Oceanic Iron Ore Tell Us?

It’s certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. 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 Oceanic Iron Ore shares, given these transactions (along with notable insider ownership of the company). So these insider transactions can help us build a thesis about the stock, but it’s also worthwhile knowing the risks facing this company. To assist with this, we’ve discovered 3 warning signs that you should run your eye over to get a better picture of Oceanic Iron Ore.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.