Stock Analysis

Insider Stock Buyers At ZOO Digital Group Recouped Some Losses This Week

Published
AIM:ZOO

Some of the losses seen by insiders who purchased US$110.1k worth of ZOO Digital Group plc (LON:ZOO) shares over the past year were recovered after the stock increased by 48% over the past week. The purchase, however, has proven to be a pricey bet, with losses currently totalling US$14k.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for ZOO Digital Group

The Last 12 Months Of Insider Transactions At ZOO Digital Group

In the last twelve months, the biggest single purchase by an insider was when Independent Non-Executive Chairman Gillian Wilmot bought UK£60k worth of shares at a price of UK£0.38 per share. That means that even when the share price was higher than UK£0.33 (the recent price), an insider wanted to purchase shares. 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. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

In the last twelve months ZOO Digital Group insiders were buying shares, but not selling. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

AIM:ZOO Insider Trading Volume March 27th 2024

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 Of ZOO Digital Group

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 12% of ZOO Digital Group shares, worth about UK£4.0m, according to our data. Whilst better than nothing, we're not overly impressed by these holdings.

What Might The Insider Transactions At ZOO Digital Group Tell Us?

The fact that there have been no ZOO Digital Group insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. While we have no worries about the insider transactions, we'd be more comfortable if they owned more ZOO Digital Group stock. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing ZOO Digital Group. At Simply Wall St, we've found that ZOO Digital Group has 3 warning signs (1 is a bit concerning!) that deserve your attention before going any further with your analysis.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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 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.