Zeus Resources Slides As Insider Purchases Lose Another AU$100k

The recent price decline of 11% in Zeus Resources Limited's (ASX:ZEU) stock may have disappointed insiders who bought AU$160.5k worth of shares at an average price of AU$0.021 in the past 12 months. Insiders invest with the hopes of seeing their money grow in value over time. However, as a result of recent losses, their initial investment is now only worth AU$60.8k, which is not what they expected.

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 Zeus Resources

Zeus Resources Insider Transactions Over The Last Year

The insider, Niu Chunyan, made the biggest insider sale in the last 12 months. That single transaction was for AU$116k worth of shares at a price of AU$0.033 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of AU$0.008. So it is hard to draw any strong conclusion from it. Niu Chunyan was the only individual insider to sell over the last year. Notably Niu Chunyan was also the biggest buyer, having purchased AU$160k worth of shares.

In the last twelve months insiders purchased 7.60m shares for AU$160k. But they sold 3.52m shares for AU$116k. In total, Zeus Resources insiders bought more than they sold over the last year. Their average price was about AU$0.021. I'd consider this a positive as it suggests insiders see value at around the current price. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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

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. It appears that Zeus Resources insiders own 33% of the company, worth about AU$1.2m. 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 Do The Zeus Resources Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Zeus Resources shares in the last quarter. However, our analysis of transactions over the last year is heartening. Overall we don't see anything to make us think Zeus Resources insiders are doubting the company, and they do own shares. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Case in point: We've spotted 6 warning signs for Zeus Resources you should be aware of, and 5 of them can't be ignored.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.