Simon Retter Is The Finance Director & Director of Zaim Credit Systems Plc (LON:ZAIM) And They Just Picked Up 36% More Shares

Even if it's not a huge purchase, we think it was good to see that Simon Retter, the Finance Director & Director of Zaim Credit Systems Plc (LON:ZAIM) recently shelled out UK£57k to buy stock, at UK£0.044 per share. While we're hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 36%.

See our latest analysis for Zaim Credit Systems

The Last 12 Months Of Insider Transactions At Zaim Credit Systems

Notably, that recent purchase by Simon Retter is the biggest insider purchase of Zaim Credit Systems shares that we've seen in the last year. That means that an insider was happy to buy shares at above the current price of UK£0.038. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares is very important. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. The only individual insider to buy over the last year was Simon Retter.

The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

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. We usually like to see fairly high levels of insider ownership. Our data isn't picking up on much insider ownership at Zaim Credit Systems, though insiders do hold about UK£137k worth of shares. It's always possible we are missing something but from our data, it looks like insider ownership is minimal.

So What Do The Zaim Credit Systems Insider Transactions Indicate?

The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Zaim Credit Systems insiders are expecting a bright future. 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 Zaim Credit Systems is showing 3 warning signs in our investment analysis, and 1 of those is a bit concerning...

Of course Zaim Credit Systems 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.

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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. 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.
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