ZICO Holdings Inc. (Catalist:40W) shareholders (or potential shareholders) will be happy to see that insider Nik Bin Nik Hassan Thani recently bought a whopping S$2.7m worth of stock, at a price of S$0.09. That increased their holding by a full 295%, which arguably implies the sort of confidence required for a shy sweet-natured nerd to ask the most popular kid in the school to go out on a date.

See our latest analysis for ZICO Holdings

The Last 12 Months Of Insider Transactions At ZICO Holdings

Notably, that recent purchase by Nik Bin Nik Hassan Thani is the biggest insider purchase of ZICO Holdings shares that we've seen in the last year. That means that even when the share price was higher than S$0.07 (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. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. The only individual insider to buy over the last year was Nik Bin Nik Hassan Thani.

The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that ZICO Holdings insiders own 44% of the company, worth about S$11m. 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 ZICO Holdings Tell Us?

The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest ZICO Holdings insiders are well aligned, and quite possibly think the share price is too low. Looks promising! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Our analysis shows 3 warning signs for ZICO Holdings (2 are potentially serious!) and we strongly recommend you look at them before investing.