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Insiders who bought US$2.11m worth of Zenas BioPharma, Inc. (NASDAQ:ZBIO) stock in the last year have seen some of their losses recouped as the stock gained 12% last week. However, the purchase is proving to be a costly gamble, since losses made by insiders have totalled US$407k since the time of purchase.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
Our free stock report includes 3 warning signs investors should be aware of before investing in Zenas BioPharma. Read for free now.
Zenas BioPharma Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Independent Director Hongbo Lu bought US$1m worth of shares at a price of US$17.00 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$9.81). It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
In the last twelve months Zenas BioPharma insiders were buying shares, but not selling. The average buy price was around US$12.15. This is nice to see since it implies that insiders might see value around current prices. 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 Zenas BioPharma
Zenas BioPharma 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.
Insiders At Zenas BioPharma Have Bought Stock Recently
Over the last quarter, Zenas BioPharma insiders have spent a meaningful amount on shares. Overall, two insiders shelled out US$244k for shares in the company -- and none sold. This could be interpreted as suggesting a positive outlook.
Insider Ownership Of Zenas BioPharma
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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Our data suggests Zenas BioPharma insiders own 1.0% of the company, worth about US$3.9m. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. We consider this fairly low insider ownership.