Even if it's not a huge purchase, we think it was good to see that Stephen Copulos, a Consolidated Zinc Limited (ASX:CZL) insider, recently shelled out AU$65k to buy stock, at AU$0.033 per share. However, it only increased their shares held by 4.1%, and it wasn't a huge purchase by absolute value, either.
The Last 12 Months Of Insider Transactions At Consolidated Zinc
In fact, the recent purchase by insider Stephen Copulos was not their only acquisition of Consolidated Zinc shares this year. They previously made an even bigger purchase of AU$200k worth of shares at a price of AU$0.04 per share. That means that an insider was happy to buy shares at above the current price of AU$0.028. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Stephen Copulos was the only individual insider to buy during the last year. We note that Stephen Copulos was also the biggest seller.
Stephen Copulos bought a total of 7.96m shares over the year at an average price of AU$0.039. The chart below shows insider transactions (by companies and individuals) over the last year. 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. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Does Consolidated Zinc Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Consolidated Zinc insiders own 22% of the company, worth about AU$1.8m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About Consolidated Zinc Insiders?
It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. 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 Consolidated Zinc 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 Consolidated Zinc. Every company has risks, and we've spotted 4 warning signs for Consolidated Zinc (of which 3 are significant!) you should know about.
But note: Consolidated Zinc may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.
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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.