TZ Insiders May Regret Not Buying More, Market Cap Hits AU$17m

TZ Limited (ASX:TZL) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 15% resulting in a AU$2.2m addition to the company’s market value. As a result, their original purchase of AU$78.4k worth of stock is now worth AU$191.4k.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

We've discovered 3 warning signs about TZ. View them for free.

TZ Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when insider Joseph Bogue bought AU$78k worth of shares at a price of AU$0.025 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of AU$0.061. 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.

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!

See our latest analysis for TZ

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership

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. TZ insiders own about AU$4.0m worth of shares. That equates to 24% 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.

What Might The Insider Transactions At TZ Tell Us?

It doesn't really mean much that no insider has traded TZ shares in the last quarter. However, our analysis of transactions over the last year is heartening. Insiders own shares in TZ and we see no evidence to suggest they are worried about the future. While it's good to be aware of 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. For instance, we've identified 3 warning signs for TZ (1 is significant) you should be aware of.

But note: TZ may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.