Zoono Group Limited (ASX:ZNO) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 14% resulting in a AU$4.1m addition to the company’s market value. As a result, their original purchase of NZ$1.12m worth of stock is now worth NZ$2.64m.
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.
The insider Stephen Henesy made the biggest insider purchase in the last 12 months. That single transaction was for AU$561k worth of shares at a price of AU$0.035 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of AU$0.083. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
While Zoono Group insiders bought shares during the last year, they didn't sell. You can see a visual depiction of insider transactions (by companies and 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!
See our latest analysis for Zoono Group
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).
It's good to see that Zoono Group insiders have made notable investments in the company's shares. We can see that insider Stephen Henesy paid AU$561k for shares in the company. No-one sold. This is a positive in our book as it implies some confidence.
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Zoono Group insiders own 55% of the company, worth about AU$18m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Zoono Group. Looks promising! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we've found that Zoono Group has 4 warning signs (3 are significant!) that deserve your attention before going any further with your analysis.
Of course Zoono Group 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.