With Zeus Resources Up 24%, Insider Buyers Count Their Returns \

Zeus Resources Limited (ASX:ZEU) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 24%, resulting in a AU$2.6m rise in the company's market capitalisation. As a result, the stock they originally bought for AU$115k is now worth AU$196k.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Zeus Resources

The Last 12 Months Of Insider Transactions At Zeus Resources

In the last twelve months, the biggest single purchase by an insider was when insider Niu Chunyan bought AU$115k worth of shares at a price of AU$0.018 per share. Even though the purchase was made at a significantly lower price than the recent price (AU$0.031), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Zeus Resources insiders may have bought shares in the last year, but they didn't sell any. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insiders At Zeus Resources Have Bought Stock Recently

Over the last quarter, Zeus Resources insiders have spent a meaningful amount on shares. In total, insiders bought AU$115k worth of shares in that time, and we didn't record any sales whatsoever. This is a positive in our book as it implies some confidence.

Does Zeus Resources Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Zeus Resources insiders own about AU$3.8m worth of shares. That equates to 28% of the company. 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?

The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Given that insiders also own a fair bit of Zeus Resources we think they are probably pretty confident of 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. For example - Zeus Resources has 5 warning signs we think you should be aware of.

Of course Zeus Resources 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.