Yahoo Finance CEO & Chairman of Cadiz Susan Kennedy Buys 7.9% More Shares
Even if it's not a huge purchase, we think it was good to see that Susan Kennedy, the CEO & Chairman of Cadiz Inc. (NASDAQ:CDZI) recently shelled out US$56k to buy stock, at US$2.25 per share. However, it only increased their shares held by 7.9%, and it wasn't a huge purchase by absolute value, either.
See our latest analysis for Cadiz
The Last 12 Months Of Insider Transactions At Cadiz
The insider Maria Jelescu-Dreyfus made the biggest insider purchase in the last 12 months. That single transaction was for US$350k worth of shares at a price of US$3.50 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$2.27). 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. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
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. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Cadiz is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Cadiz Boast High Insider Ownership?
Many investors like to check how much of a company is owned by 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. From looking at our data, insiders own US$2.8m worth of Cadiz stock, about 1.9% of the company. However, it's possible that insiders might have an indirect interest through a more complex structure. I generally like to see higher levels of ownership.
So What Do The Cadiz Insider Transactions Indicate?
It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Cadiz stock. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Every company has risks, and we've spotted 2 warning signs for Cadiz (of which 1 is a bit unpleasant!) you should know about.
Of course Cadiz may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
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 of direct interests only, but not derivative transactions or indirect interests.
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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.
