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We often see insiders buying up shares in companies that perform well over the long term. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So shareholders might well want to know whether insiders have been buying or selling shares in Zanzibar Gold Inc. (CNSX:ZBR).
What Is Insider Selling?
It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, most countries require that the company discloses such transactions to the market.
We don't think shareholders should simply follow insider transactions. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year.'
Check out our latest analysis for Zanzibar Gold
The Last 12 Months Of Insider Transactions At Zanzibar Gold
While there weren't any large insider transactions in the last twelve months, it's still worth looking at the trading.
Souhail Abi-Farrage divested 450k shares over the last 12 months at an average price of CA$0.23. The chart below shows insider transactions (by 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!
I will like Zanzibar Gold better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
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. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 11% of Zanzibar Gold shares, worth about CA$353k, according to our data. We do generally prefer see higher levels of insider ownership.
So What Do The Zanzibar Gold Insider Transactions Indicate?
An insider hasn't bought Zanzibar Gold stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. When you combine this with the relatively low insider ownership, we are very cautious about the stock. As the saying goes, only fools rush in. Along with insider transactions, I recommend checking if Zanzibar Gold is growing revenue. This free chart of historic revenue and earnings should make that easy.