Zodiac Energy Insiders May Regret Not Buying More, Market Cap Hits ₹12b

Zodiac Energy Limited (NSE:ZODIAC) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 12% resulting in a ₹1.3b addition to the company’s market value. Put another way, the original ₹5.07m acquisition is now worth ₹10.9m.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for Zodiac Energy

The Last 12 Months Of Insider Transactions At Zodiac Energy

In the last twelve months, the biggest single purchase by an insider was when Non-Executive Director Jaxay Shah bought ₹4.9m worth of shares at a price of ₹378 per share. Even though the purchase was made at a significantly lower price than the recent price (₹809), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Zodiac Energy insiders may have bought shares in the last year, but they didn't sell any. 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!

Zodiac Energy is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Does Zodiac Energy Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Zodiac Energy insiders own about ₹9.0b worth of shares (which is 75% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About Zodiac Energy Insiders?

It doesn't really mean much that no insider has traded Zodiac Energy shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Judging from their transactions, and high insider ownership, Zodiac Energy insiders feel good about the company's future. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. While conducting our analysis, we found that Zodiac Energy has 1 warning sign and it would be unwise to ignore it.

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.