Yahoo Finance Keith Brackpool Is The Founder & Non-Executive Director of Cadiz Inc. (NASDAQ:CDZI) And They Just Picked Up 12% More Shares
Potential Cadiz Inc. (NASDAQ:CDZI) shareholders may wish to note that the Founder & Non-Executive Director, Keith Brackpool, recently bought US$394k worth of stock, paying US$1.97 for each share. That's a very decent purchase to our minds and it grew their holding by a solid 12%.
See our latest analysis for Cadiz
The Last 12 Months Of Insider Transactions At Cadiz
Notably, that recent purchase by Keith Brackpool is the biggest insider purchase of Cadiz shares that we've seen in the last year. That implies that an insider found the current price of US$2.09 per share to be enticing. 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. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. In this case we're pleased to report that the insider purchases were made at close to current prices.
Cadiz insiders may have bought shares in the last year, but they didn't sell any. They paid about US$2.42 on average. This is nice to see since it implies that insiders might see value around current prices. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, 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.
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. From our data, it seems that Cadiz insiders own 5.6% of the company, worth about US$6.0m. But they may have an indirect interest through a corporate structure that we haven't picked up on. We do generally prefer see higher levels of insider ownership.
So What Do The Cadiz Insider Transactions Indicate?
It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Cadiz insiders are expecting a bright future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Be aware that Cadiz is showing 4 warning signs in our investment analysis, and 2 of those are a bit unpleasant...
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.
