Stock Analysis

The CEO, President & Director of ZeU Technologies Inc. (CSE:ZEU), Francois Dumas, Just Bought 57% More Shares

CNSX:ZEU
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Investors who take an interest in ZeU Technologies Inc. (CSE:ZEU) should definitely note that the CEO, President & Director, Francois Dumas, recently paid CA$0.25 per share to buy CA$215k worth of the stock. That certainly has us anticipating the best, especially since they thusly increased their own holding by 57%, potentially signalling some real optimism.

Check out our latest analysis for ZeU Technologies

ZeU Technologies Insider Transactions Over The Last Year

Notably, that recent purchase by Francois Dumas is the biggest insider purchase of ZeU Technologies shares that we've seen in the last year. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of CA$0.50. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

Francois Dumas purchased 1.31m shares over the year. The average price per share was CA$0.25. 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!

insider-trading-volume
CNSX:ZEU Insider Trading Volume January 10th 2021

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Does ZeU Technologies Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 7.6% of ZeU Technologies shares, worth about CA$1.0m, according to our data. Whilst better than nothing, we're not overly impressed by these holdings.

What Might The Insider Transactions At ZeU Technologies Tell Us?

The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that ZeU Technologies insiders are reasonably well aligned, and optimistic for the future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example, ZeU Technologies has 4 warning signs (and 1 which makes us a bit uncomfortable) we think you should know about.

But note: ZeU Technologies 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, but not derivative transactions.

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