ZYUS Life Sciences Slides As Insider Purchases Lose Another CA$44k
Insiders who acquired CA$200.0k worth of ZYUS Life Sciences Corporation's (CVE:ZYUS) stock at an average price of CA$0.45 in the past 12 months may be dismayed by the recent 30% price decline. Insiders purchase with the hope of seeing their investments increase in value over time. However, due to recent losses, their initial investment is now only worth CA$155.6k, which is not great.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
The Last 12 Months Of Insider Transactions At ZYUS Life Sciences
Notably, that recent purchase by Wayne Brownlee is the biggest insider purchase of ZYUS Life Sciences shares that we've seen in the last year. That means that even when the share price was higher than CA$0.35 (the recent price), an insider wanted to purchase shares. 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. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
ZYUS Life Sciences insiders may have bought shares in the last year, but they didn't sell any. 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!
See our latest analysis for ZYUS Life Sciences
ZYUS Life Sciences is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.
ZYUS Life Sciences Insiders Bought Stock Recently
Over the last three months, we've seen significant insider buying at ZYUS Life Sciences. Not only was there no selling that we can see, but they collectively bought CA$200k worth of shares. This could be interpreted as suggesting a positive outlook.
Insider Ownership
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. It's great to see that ZYUS Life Sciences insiders own 48% of the company, worth about CA$14m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
What Might The Insider Transactions At ZYUS Life Sciences Tell Us?
It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give 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 ZYUS Life Sciences. Nice! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Be aware that ZYUS Life Sciences is showing 5 warning signs in our investment analysis, and 4 of those are significant...
Of course ZYUS Life Sciences 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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