We often see insiders buying up shares in companies that perform well over the long term. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So shareholders might well want to know whether insiders have been buying or selling shares in Consolidated Zinc Limited (ASX:CZL).
Do Insider Transactions Matter?
It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, such insiders must disclose their trading activities, and not trade on inside information.
Insider transactions are not the most important thing when it comes to long-term investing. But equally, we would consider it foolish to ignore insider transactions altogether. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise'.
View our latest analysis for Consolidated Zinc
Consolidated Zinc Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when insider Stephen Copulos bought AU$160k worth of shares at a price of AU$0.003 per share. Even though the purchase was made at a significantly lower price than the recent price (AU$0.0045), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
In the last twelve months insiders purchased 92.94m shares for AU$333k. On the other hand they divested 8.97m shares, for AU$25k. In total, Consolidated Zinc insiders bought more than they sold over the last year. The average buy price was around AU$0.0036. To my mind it is good that insiders have invested their own money in the company. But we must note that the investments were made at well below today's share price. 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!
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 Consolidated Zinc Have Bought Stock Recently
There has been significantly more insider buying, than selling, at Consolidated Zinc, over the last three months. Insiders spent AU$184k on shares. On the other hand, Non-Executive Chairman Andrew Richards netted AU$25k by selling. Insiders have spent more buying shares than they have selling, so on balance we think they are are probably optimistic.