When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Orion Group Holdings, Inc.'s (NYSE:ORN) instance, it's good news for shareholders.

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.

View our latest analysis for Orion Group Holdings

The Last 12 Months Of Insider Transactions At Orion Group Holdings

The Independent Chairman, Austin Shanfelter, made the biggest insider sale in the last 12 months. That single transaction was for US$360k worth of shares at a price of US$9.01 each. That means that an insider was selling shares at around the current price of US$8.64. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive). The only individual insider seller over the last year was Austin Shanfelter.

Over the last year, we can see that insiders have bought 69.52k shares worth US$467k. On the other hand they divested 40.00k shares, for US$360k. Overall, Orion Group Holdings insiders were net buyers during the last year. Their average price was about US$6.72. It is certainly positive to see that insiders have invested their own money in the company. But we must note that the investments were made at well below today's share 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!

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insiders At Orion Group Holdings Have Bought Stock Recently

Over the last quarter, Orion Group Holdings insiders have spent a meaningful amount on shares. Overall, two insiders shelled out US$119k for shares in the company -- and none sold. This makes one think the business has some good points.

Insider Ownership Of Orion Group Holdings

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 9.1% of Orion Group Holdings shares, worth about US$31m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Orion Group Holdings Tell Us?

The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Insiders likely see value in Orion Group Holdings shares, given these transactions (along with notable insider ownership of the company). In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Orion Group Holdings. In terms of investment risks, we've identified 2 warning signs with Orion Group Holdings and understanding these should be part of your investment process.

Of course Orion Group Holdings may not be the best stock to buy. So you may wish to see this free collection of high quality 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.