Zimi Loses AU$1.9m Market Value But Insiders See Windfall Of AU$116k

Zimi Limited (ASX:ZMM) insiders who acquired shares over the previous 12 months, can probably afford to ignore the recent 28% decline in the stock price. After accounting for the recent loss, the AU$387.5k worth of shares they purchased is now worth AU$503.8k, suggesting a good return on their investment.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for Zimi

Zimi Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when insider Todd Milliner bought AU$362k worth of shares at a price of AU$0.01 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of AU$0.013. 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.

Zimi 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. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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).

Insiders At Zimi Have Bought Stock Recently

Over the last quarter, Zimi insiders have spent a meaningful amount on shares. Overall, two insiders shelled out AU$387k for shares in the company -- and none sold. This makes one think the business has some good points.

Insider Ownership Of Zimi

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Zimi insiders own about AU$1.2m worth of shares. That equates to 25% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Zimi Insiders?

It is good to see recent purchasing. 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. Insiders likely see value in Zimi shares, given these transactions (along with notable insider ownership of the company). In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Zimi. Be aware that Zimi is showing 4 warning signs in our investment analysis, and 3 of those can't be ignored...

Of course Zimi 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 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.