Have Insiders Sold Zentalis Pharmaceuticals, Inc. (NASDAQ:ZNTL) Shares Recently?

We'd be surprised if Zentalis Pharmaceuticals, Inc. (NASDAQ:ZNTL) shareholders haven't noticed that the Chief Operating Officer, Kevin Bunker, recently sold US$392k worth of stock at US$46.55 per share. On the bright side, that sale was only 0.8% of their holding, so we doubt it's very meaningful, on its own.

Check out our latest analysis for Zentalis Pharmaceuticals

The Last 12 Months Of Insider Transactions At Zentalis Pharmaceuticals

Notably, that recent sale by Kevin Bunker is the biggest insider sale of Zentalis Pharmaceuticals shares that we've seen in the last year. That means that an insider was selling shares at slightly below the current price (US$50.90). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. We note that the biggest single sale was only 0.8%of Kevin Bunker's holding.

Happily, we note that in the last year insiders paid US$382k for 21.24k shares. But insiders sold 8.43k shares worth US$392k. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Insider Ownership of Zentalis Pharmaceuticals

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. Zentalis Pharmaceuticals insiders own about US$181m worth of shares (which is 9.7% 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 Do The Zentalis Pharmaceuticals Insider Transactions Indicate?

An insider sold Zentalis Pharmaceuticals shares recently, but they didn't buy any. Zooming out, the longer term picture doesn't give us much comfort. It is good to see high insider ownership, but the insider selling leaves us cautious. While we like knowing 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. To help with this, we've discovered 3 warning signs (1 makes us a bit uncomfortable!) that you ought to be aware of before buying any shares in Zentalis Pharmaceuticals.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.

If you’re looking to trade Zentalis Pharmaceuticals, open an account with the lowest-cost* platform trusted by professionals, Interactive Brokers. Their clients from over 200 countries and territories trade stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted

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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.