Yahoo Finance Have Insiders Been Selling Consolidated Zinc Limited (ASX:CZL) Shares?
It is not uncommon to see companies perform well in the years after insiders buy shares. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So before you buy or sell Consolidated Zinc Limited (ASX:CZL), you may well want to know whether insiders have been buying or selling.
What Is Insider Buying?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock in the company. 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 Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year.'
View our latest analysis for Consolidated Zinc
The Last 12 Months Of Insider Transactions At Consolidated Zinc
Over the last year, we can see that the biggest insider sale was by the Non-Executive Chairman, Stephen Copulos, for AU$675k worth of shares, at about AU$0.013 per share. So what is clear is that an insider saw fit to sell at around the current price of AU$0.012. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern. Notably Stephen Copulos was also the biggest buyer, having purchased AU$575k worth of shares.
Over the last year, we can see that insiders have bought 38.3m shares worth AU$575k. But they sold 53.4m for AU$694k. All up, insiders sold more shares in Consolidated Zinc than they bought, over the last year. The sellers received a price of around AU$0.013, on average. It's not particularly great to see insiders were selling shares around current prices. But we don't put too much weight on the insider selling, since sellers could have personal reasons. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insiders at Consolidated Zinc Have Sold Stock Recently
Over the last three months, we've seen notably more insider selling, than insider buying, at Consolidated Zinc. We note insiders cashed in AU$694k worth of shares. Meanwhile insiders bought AU$176k worth. Generally this level of net selling might be considered a bit bearish.
Does Consolidated Zinc Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 27% of Consolidated Zinc shares, worth about AU$4.4m. 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 Does This Data Suggest About Consolidated Zinc Insiders?
Unfortunately, there has been more insider selling of Consolidated Zinc stock, than buying, in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We'd think twice before buying! To put this in context, take a look at how a company has performed in the past. You can access this detailed graph of past earnings, revenue and cash flow .
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.
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.
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. Thank you for reading.
