Insiders At Zoono Group See Good Returns After Buying Stock Worth NZ$1.12m
Insiders who purchased Zoono Group Limited (ASX:ZNO) shares in the past 12 months are unlikely to be deeply impacted by the stock's 10.0% decline over the past week. Even after accounting for the recent loss, the NZ$1.12m worth of stock purchased by them is now worth NZ$1.72m or in other words, their investment continues to give good returns.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Zoono Group Insider Transactions Over The Last Year
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. Even though the purchase was made at a significantly lower price than the recent price (AU$0.054), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
Zoono Group 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 want to know exactly who sold, for how much, and when, simply click on the graph below!
See our latest analysis for Zoono Group
Zoono Group 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.
Does Zoono Group Boast High 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 Zoono Group insiders own 55% of the company, worth about AU$12m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
What Might The Insider Transactions At Zoono Group Tell Us?
It doesn't really mean much that no insider has traded Zoono Group shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. With high insider ownership and encouraging transactions, it seems like Zoono Group insiders think the business has merit. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. To help with this, we've discovered 4 warning signs (3 are significant!) that you ought to be aware of before buying any shares in Zoono Group.
But note: Zoono Group 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 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.