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Insiders were net buyers of Zuleika Gold Limited's (ASX:ZAG ) stock during the past year. That is, insiders bought more stock than they sold.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
View our latest analysis for Zuleika Gold
Zuleika Gold Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Executive Chairman Hui Guo for AU$275k worth of shares, at about AU$0.027 per share. That means that even when the share price was higher than AU$0.017 (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. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Hui Guo was the only individual insider to buy during the last year.
You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership Of Zuleika Gold
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 17% of Zuleika Gold shares, worth about AU$2.1m. 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 Zuleika Gold Insider Transactions Indicate?
The fact that there have been no Zuleika Gold insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. Overall we don't see anything to make us think Zuleika Gold insiders are doubting the company, and they do own shares. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Zuleika Gold. At Simply Wall St, we've found that Zuleika Gold has 5 warning signs (4 are a bit unpleasant!) that deserve your attention before going any further with your analysis.