Favourable Signals For Zenith Minerals: Numerous Insiders Acquired Stock

When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Zenith Minerals Limited's (ASX:ZNC) instance, it's good news for shareholders.

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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Zenith Minerals Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Managing Director & Director Andrew R. Smith bought AU$96k worth of shares at a price of AU$0.03 per share. That means that an insider was happy to buy shares at around the current price of AU$0.03. Of course they may have changed their mind. But this suggests they are optimistic. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for Zenith Minerals share holders is that insiders were buying at near the current price.

Zenith Minerals insiders may have bought shares in the last year, but they didn't sell any. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

Check out our latest analysis for Zenith Minerals

Zenith Minerals is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Insiders At Zenith Minerals Have Bought Stock Recently

It's good to see that Zenith Minerals insiders have made notable investments in the company's shares. Overall, three insiders shelled out AU$110k for shares in the company -- and none sold. This makes one think the business has some good points.

Does Zenith Minerals 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. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data indicates that Zenith Minerals insiders own about AU$2.3m worth of shares (which is 15% of the company). But they may have an indirect interest through a corporate structure that we haven't picked up on. We do generally prefer see higher levels of insider ownership.

So What Do The Zenith Minerals Insider Transactions Indicate?

The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Zenith Minerals insiders are expecting 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. At Simply Wall St, we've found that Zenith Minerals has 5 warning signs (3 are concerning!) that deserve your attention before going any further with your analysis.

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.