Yahoo Finance Several Insiders Invested In Zinnwald Lithium Flagging Positive News
Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of Zinnwald Lithium Plc (LON:ZNWD), that sends out a positive message to the company's shareholders.
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.
See our latest analysis for Zinnwald Lithium
Zinnwald Lithium Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by CFO, Secretary & Director Osman Rifaat for UK£71k worth of shares, at about UK£0.11 per share. That means that an insider was happy to buy shares at above the current price of UK£0.093. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. We note that Osman Rifaat was both the biggest buyer and the biggest seller.
Happily, we note that in the last year insiders paid UK£111k for 1.03m shares. But they sold 1.03m shares for UK£111k. Overall, Zinnwald Lithium insiders were net buyers during the last year. 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!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insider Ownership Of Zinnwald Lithium
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. From our data, it seems that Zinnwald Lithium insiders own 12% of the company, worth about UK£5.4m. We do generally prefer see higher levels of insider ownership.
So What Do The Zinnwald Lithium Insider Transactions Indicate?
The fact that there have been no Zinnwald Lithium insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Zinnwald Lithium stock. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For instance, we've identified 5 warning signs for Zinnwald Lithium (4 are a bit concerning) you should be aware of.
But note: Zinnwald Lithium 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 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.
