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Have Insiders Been Buying Osisko Gold Royalties Ltd (TSE:OR) Shares?

We often see insiders buying up shares in companies that perform well over the long term. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So we'll take a look at whether insiders have been buying or selling shares in Osisko Gold Royalties Ltd (TSE:OR).

What Is Insider Buying?

It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, rules govern insider transactions, and certain disclosures are required.

We don't think shareholders should simply follow insider transactions. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.

See our latest analysis for Osisko Gold Royalties

Osisko Gold Royalties Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the insider, André Gaumond, sold CA$1.0m worth of shares at a price of CA$14.95 per share. That means that an insider was selling shares at around the current price of CA$13.58. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign. André Gaumond was the only individual insider to sell over the last year.

Over the last year, we can see that insiders have bought 152.99k shares worth CA$1.5m. But they sold 70000 shares for CA$1.0m. In the last twelve months there was more buying than selling by Osisko Gold Royalties insiders. The average buy price was around CA$9.79. We don't deny that it is nice to see insiders buying stock in the company. However, we do note that they were buying at significantly lower prices than today's share price. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

TSX:OR Recent Insider Trading, February 25th 2020
TSX:OR Recent Insider Trading, February 25th 2020

Osisko Gold Royalties is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insiders at Osisko Gold Royalties Have Bought Stock Recently

Over the last three months, we've seen significant insider buying at Osisko Gold Royalties. In total, insiders bought CA$1.1m worth of shares in that time, and we didn't record any sales whatsoever. This is a positive in our book as it implies some confidence.

Does Osisko Gold Royalties Boast High 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. Osisko Gold Royalties insiders own about CA$14m worth of shares. That equates to 0.7% 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.

So What Does This Data Suggest About Osisko Gold Royalties Insiders?

The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. 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 Osisko Gold Royalties shares, given these transactions (along with notable insider ownership of the company). Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Osisko Gold Royalties.

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, but not derivative transactions.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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.