Advance ZincTek's Market Cap Up AU$17m Following Year Of Insider Stock Buying

Last week, Advance ZincTek Limited (ASX:ANO) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 33% last week, resulting in a AU$17m increase in the company's market worth, implying a 45% gain on their initial purchase. As a result, the stock they originally bought for AU$454.1k is now worth AU$657.5k.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

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The Last 12 Months Of Insider Transactions At Advance ZincTek

The Non-Executive Chairman Lev Mizikovsky made the biggest insider purchase in the last 12 months. That single transaction was for AU$78k worth of shares at a price of AU$0.76 each. Even though the purchase was made at a significantly lower price than the recent price (AU$1.10), we still think insider buying is a positive. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

Lev Mizikovsky purchased 597.69k shares over the year. The average price per share was AU$0.76. 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!

See our latest analysis for Advance ZincTek

Advance ZincTek is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, 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. We usually like to see fairly high levels of insider ownership. Advance ZincTek insiders own 72% of the company, currently worth about AU$50m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About Advance ZincTek Insiders?

Insider purchases may have been minimal, in the last three months, but there was no selling at all. Overall the buying isn't worth writing home about. But insiders have shown more of an appetite for the stock, over the last year. With high insider ownership and encouraging transactions, it seems like Advance ZincTek insiders think the business has merit. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Advance ZincTek. Case in point: We've spotted 2 warning signs for Advance ZincTek you should be aware of, and 1 of them is potentially serious.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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 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.