Insiders Sold Zeo Energy At US$1.17, Meanwhile Stock Sits Near US$0.25
Despite the fact that Zeo Energy Corp.'s (NASDAQ:ZEO) value has dropped 14% in the last week insiders who sold US$94k worth of stock in the past 12 months have had less success. Insiders would probably have been better off holding on to their shares given that the average selling price of US$1.17 is still lower than the current share price.
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.
The Last 12 Months Of Insider Transactions At Zeo Energy
Over the last year, we can see that the biggest insider sale was by the Chief Sales Officer, Brandon Bridgewater, for US$51k worth of shares, at about US$1.20 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (US$0.25). So it may not tell us anything about how insiders feel about the current share price. Brandon Bridgewater was the only individual insider to sell shares in the last twelve months.
Brandon Bridgewater ditched 79.89k shares over the year. The average price per share was US$1.17. 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!
View our latest analysis for Zeo Energy
For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.
Insider Ownership
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Zeo Energy insiders own 15% of the company, worth about US$2.3m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Do The Zeo Energy Insider Transactions Indicate?
The fact that there have been no Zeo Energy insider transactions recently certainly doesn't bother us. Our analysis of Zeo Energy insider transactions leaves us cautious. But we do like the fact that insiders own a fair chunk of the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Zeo Energy. For example, Zeo Energy has 4 warning signs (and 3 which can't be ignored) we think you should know about.
But note: Zeo Energy 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.