Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of ZYUS Life Sciences Corporation (CVE:ZYUS), that sends out a positive message to the company's shareholders.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
The Last 12 Months Of Insider Transactions At ZYUS Life Sciences
The Independent Director Wayne Brownlee made the biggest insider purchase in the last 12 months. That single transaction was for CA$250k worth of shares at a price of CA$0.67 each. That means that an insider was happy to buy shares at above the current price of CA$0.62. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. 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.
While ZYUS Life Sciences insiders bought shares during the last year, they didn't sell. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
View our latest analysis for ZYUS Life Sciences
ZYUS Life Sciences is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Insiders At ZYUS Life Sciences Have Bought Stock Recently
It's good to see that ZYUS Life Sciences insiders have made notable investments in the company's shares. In total, insiders bought CA$504k worth of shares in that time, and we didn't record any sales whatsoever. This is a positive in our book as it implies some confidence.
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. ZYUS Life Sciences insiders own about CA$28m worth of shares (which is 52% 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.
What Might The Insider Transactions At ZYUS Life Sciences Tell Us?
The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about ZYUS Life Sciences. One for the watchlist, at least! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing ZYUS Life Sciences. Our analysis shows 4 warning signs for ZYUS Life Sciences (3 are a bit unpleasant!) and we strongly recommend you look at these before investing.
But note: ZYUS Life Sciences 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.