Insiders who bought this year lost AU$12k as Zoom2u Technologies Limited (ASX:Z2U) sheds AU$6.9m in value

Simply Wall St
January 23, 2022
Source: Shutterstock

Insiders who bought AU$173k worth of Zoom2u Technologies Limited's (ASX:Z2U) stock at an average buy price of AU$0.36 over the last year may be disappointed by the recent 11% decrease in the stock. Insiders invest with the hopes of seeing their money grow in value over time. However, as a result of recent losses, their initial investment is now only worth AU$161k, which is not what they expected.

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.

See our latest analysis for Zoom2u Technologies

Zoom2u Technologies Insider Transactions Over The Last Year

The Founder Steve Orenstein made the biggest insider purchase in the last 12 months. That single transaction was for AU$148k worth of shares at a price of AU$0.37 each. That means that even when the share price was higher than AU$0.34 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

Zoom2u Technologies 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!

ASX:Z2U Insider Trading Volume January 23rd 2022

Zoom2u Technologies is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Zoom2u Technologies Insiders Bought Stock Recently

Over the last three months, we've seen significant insider buying at Zoom2u Technologies. Overall, two insiders shelled out AU$173k for shares in the company -- and none sold. This could be interpreted as suggesting a positive outlook.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. It's great to see that Zoom2u Technologies insiders own 43% of the company, worth about AU$26m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About Zoom2u Technologies 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. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Zoom2u Technologies. Looks promising! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Be aware that Zoom2u Technologies is showing 7 warning signs in our investment analysis, and 3 of those can't be ignored...

Of course Zoom2u Technologies 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, but not derivative transactions.

Discounted cash flow calculation for every stock

Simply Wall St does a detailed discounted cash flow calculation every 6 hours for every stock on the market, so if you want to find the intrinsic value of any company just search here. It’s FREE.

Make Confident Investment Decisions

Simply Wall St's Editorial Team provides unbiased, factual reporting on global stocks using in-depth fundamental analysis.
Find out more about our editorial guidelines and team.