Insiders Give Up AU$47k As TZ Stock Drops To AU$0.018

The recent price decline of 28% in TZ Limited's (ASX:TZL) stock may have disappointed insiders who bought AU$166.4k worth of shares at an average price of AU$0.025 in the past 12 months. This is not good as insiders invest based on expectations that their money will appreciate over time. However, as a result of recent losses, their original investment is now worth only AU$119.6k.

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

View our latest analysis for TZ

TZ Insider Transactions Over The Last Year

In fact, the recent purchase by Joseph Bogue was the biggest purchase of TZ shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was higher than AU$0.018 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

Happily, we note that in the last year insiders paid AU$166k for 6.65m shares. On the other hand they divested 150.00k shares, for AU$3.6k. In total, TZ insiders bought more than they sold over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

TZ is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insiders At TZ Have Bought Stock Recently

It's good to see that TZ insiders have made notable investments in the company's shares. Not only was there no selling that we can see, but they collectively bought AU$86k worth of shares. This could be interpreted as suggesting a positive outlook.

Insider Ownership Of TZ

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. It appears that TZ insiders own 23% of the company, worth about AU$1.0m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At TZ Tell Us?

It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Insiders likely see value in TZ shares, given these transactions (along with notable insider ownership of the company). 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. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of TZ.

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.