Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of Advance ZincTek Limited (ASX:ANO), it sends a favourable message to the company’s shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
Advance ZincTek Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when MD, Company Secretary & Executive Director Geoffrey Acton bought AU$700k worth of shares at a price of AU$2.26 per share. We do like to see buying, but this purchase was made at well below the current price of AU$2.53. Because the shares were purchased at a lower price, this particular buy doesn’t tell us much about how insiders feel about the current share price.
Over the last year, we can see that insiders have bought 1.02m shares worth AU$2.2m. On the other hand they divested 311.00k shares, for AU$743k. In total, Advance ZincTek insiders bought more than they sold over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insiders At Advance ZincTek Have Bought Stock Recently
We saw some Advance ZincTek insider buying shares in the last three months. Insiders bought AU$62k worth of shares in that time. We like it when there are only buyers, and no sellers. But in this case the amount purchased means the recent transaction may not be very meaningful on its own.
Insider Ownership Of Advance ZincTek
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Advance ZincTek insiders own 62% of the company, currently worth about AU$96m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Does This Data Suggest About Advance ZincTek Insiders?
It is good to see recent purchasing. And the longer term insider transactions also give us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Advance ZincTek. That’s what I like to see! 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. Case in point: We’ve spotted 2 warning signs for Advance ZincTek you should be aware of.
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, 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.
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