May 20, 2024
Investment

Orpheus Uranium Insiders Enjoying AU$1.5m Appreciation On AU$1.12m Investment


Orpheus Uranium Limited (ASX:ORP) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 41%, resulting in a AU$6.6m rise in the company’s market capitalisation, translating to a gain of 136% on their initial investment. As a result, the stock they originally bought for AU$1.12m is now worth AU$2.64m.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for Orpheus Uranium

Orpheus Uranium Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when insider Paul Pheby bought AU$980k worth of shares at a price of AU$0.05 per share. Even though the purchase was made at a significantly lower price than the recent price (AU$0.12), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn’t tell us much about what they think of current prices.

While Orpheus Uranium insiders bought shares during the last year, they didn’t sell. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

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Orpheus Uranium 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

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Orpheus Uranium insiders own about AU$5.5m worth of shares. That equates to 24% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Orpheus Uranium Insider Transactions Indicate?

It doesn’t really mean much that no insider has traded Orpheus Uranium shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. Overall we don’t see anything to make us think Orpheus Uranium insiders are doubting the company, and they do own shares. 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 that end, you should learn about the 6 warning signs we’ve spotted with Orpheus Uranium (including 3 which are a bit unpleasant).

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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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