Stock Analysis

Insider Stock Buyers At EVZ Recouped Some Losses This Week \

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ASX:EVZ
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Some of the losses seen by insiders who purchased AU$240k worth of EVZ Limited (ASX:EVZ) shares over the past year were recovered after the stock increased by 10.0% over the past week. However, the purchase is proving to be a costly gamble, since losses made by insiders have totalled AU$43k since the time of purchase.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for EVZ

EVZ Insider Transactions Over The Last Year

The Independent Non-Executive Chairman Graham Burns made the biggest insider purchase in the last 12 months. That single transaction was for AU$187k worth of shares at a price of AU$0.20 each. That means that even when the share price was higher than AU$0.17 (the recent price), an insider wanted to purchase shares. 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 encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Graham Burns was the only individual insider to buy shares in the last twelve months.

Graham Burns bought a total of 1.19m shares over the year at an average price of AU$0.20. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

insider-trading-volume
ASX:EVZ Insider Trading Volume May 12th 2023

EVZ is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company 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. Insiders own 16% of EVZ shares, worth about AU$3.2m. 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 EVZ Insider Transactions Indicate?

There haven't been any insider transactions in the last three months -- that doesn't mean much. On a brighter note, the transactions over the last year are encouraging. Overall we don't see anything to make us think EVZ insiders are doubting the company, and they do own shares. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Our analysis shows 3 warning signs for EVZ (1 makes us a bit uncomfortable!) and we strongly recommend you look at them before investing.

Of course EVZ 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, 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.