This Insider Has Just Sold Shares In Zenabis Global Inc. (TSE:ZENA)

We wouldn’t blame Zenabis Global Inc. (TSE:ZENA) shareholders if they were a little worried about the fact that Rick Brar, the Co-Founder recently netted about CA$681k selling shares at an average price of CA$1.36. However, it’s crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 2.1%.

See our latest analysis for Zenabis Global

The Last 12 Months Of Insider Transactions At Zenabis Global

In fact, the recent sale by Co-Founder Rick Brar was not their only sale of Zenabis Global shares this year. Earlier in the year, they fetched CA$1.45 per share in a -CA$681.3k sale. We generally don’t like to see insider selling, but the lower the sale price, the more it concerns us. It’s of some comfort that this sale was conducted at a price well above the current share price, which is CA$1.07. So it may not tell us anything about how insiders feel about the current share price.

Happily, we note that in the last year insiders paid CA$352k for 202k shares. But insiders sold 501k shares worth CA$682k. Over the last year we saw more insider selling of Zenabis Global shares, than buying. The sellers received a price of around CA$1.36, on average. We are not joyful about insider selling. But the selling was at much higher prices than the current share price (CA$1.07), so it probably doesn’t tell us a lot about the value on offer today. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

TSX:ZENA Recent Insider Trading, August 23rd 2019
TSX:ZENA Recent Insider Trading, August 23rd 2019

Does Zenabis Global Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Zenabis Global insiders own about CA$104m worth of shares (which is 48% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The Zenabis Global Insider Transactions Indicate?

The stark truth for Zenabis Global is that there has been more insider selling than insider buying in the last three months. Despite some insider buying, the longer term picture doesn’t make us feel much more positive. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn’t make us feel confident about the company. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Zenabis Global.

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, but not derivative transactions.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.