Yahoo Finance Ziff Davis Insiders Placed Bullish Bets Worth US$765.3k
In the last year, multiple insiders have substantially increased their holdings of Ziff Davis, Inc. (NASDAQ:ZD) stock, indicating that insiders' optimism about the company's prospects has increased.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
View our latest analysis for Ziff Davis
The Last 12 Months Of Insider Transactions At Ziff Davis
The CEO, President & Director Vivek Shah made the biggest insider purchase in the last 12 months. That single transaction was for US$589k worth of shares at a price of US$58.86 each. That means that an insider was happy to buy shares at above the current price of US$55.57. 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. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
Happily, we note that in the last year insiders paid US$765k for 13.00k shares. On the other hand they divested 4.16k shares, for US$289k. In the last twelve months there was more buying than selling by Ziff Davis insiders. 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!
Ziff Davis is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Ziff Davis Insiders Are Selling The Stock
The last quarter saw substantial insider selling of Ziff Davis shares. Specifically, Executive VP Jeremy Rossen ditched US$289k worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.
Insider Ownership Of Ziff Davis
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Ziff Davis insiders own about US$36m worth of shares. That equates to 1.4% 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 Do The Ziff Davis Insider Transactions Indicate?
An insider sold stock recently, but they haven't been buying. In contrast, they appear keener if you look at the last twelve months. We like that insiders own a fair amount of the company. So we're not overly bothered by recent selling. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. While conducting our analysis, we found that Ziff Davis has 2 warning signs and it would be unwise to ignore them.
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.
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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.
