Yahoo Finance Cadiz Inc. (NASDAQ:CDZI) insiders' US$828k purchase saw a boost of US$1.0m after market cap rose US$34m
Cadiz Inc. (NASDAQ:CDZI) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 12% resulting in a US$34m addition to the company’s market value. In other words, the original US$828k purchase is now worth US$1.8m.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
View our latest analysis for Cadiz
Cadiz Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Founder & Non-Executive Director Keith Brackpool for US$394k worth of shares, at about US$2.00 per share. We do like to see buying, but this purchase was made at well below the current price of US$4.65. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
While Cadiz insiders bought shares during the last year, they didn't sell. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
Cadiz is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Cadiz Insiders Bought Stock Recently
Over the last three months, we've seen significant insider buying at Cadiz. Not only was there no selling that we can see, but they collectively bought US$247k worth of shares. This makes one think the business has some good points.
Insider Ownership
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 4.7% of Cadiz shares, worth about US$14m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About Cadiz Insiders?
It's certainly positive to see the recent insider purchases. 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 Cadiz insiders are well aligned, and that they may think the share price is too low. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we've found that Cadiz has 4 warning signs (2 make us uncomfortable!) that deserve your attention before going any further with your analysis.
But note: Cadiz may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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