Insider Stock Buyers At Zentalis Pharmaceuticals Recouped Some Losses This Week

Insiders who bought US$252.8k worth of Zentalis Pharmaceuticals, Inc. (NASDAQ:ZNTL) stock in the last year have seen some of their losses recouped as the stock gained 12% last week. The purchase, however, has proven to be a pricey bet, with losses currently totalling US$62k.

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.

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Zentalis Pharmaceuticals Insider Transactions Over The Last Year

The Independent Director Jan Skvarka made the biggest insider purchase in the last 12 months. That single transaction was for US$103k worth of shares at a price of US$1.72 each. That means that even when the share price was higher than US$1.33 (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. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

Over the last year, we can see that insiders have bought 143.70k shares worth US$253k. But they sold 34.62k shares for US$65k. Overall, Zentalis Pharmaceuticals insiders were net buyers during the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

View our latest analysis for Zentalis Pharmaceuticals

Zentalis Pharmaceuticals is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Insiders At Zentalis Pharmaceuticals Have Bought Stock Recently

There was some insider buying at Zentalis Pharmaceuticals over the last quarter. Chairman of the Board Scott Myers shelled out US$29k for shares in that time. It's good to see the insider buying, as well as the lack of recent sellers. But the amount invested in the last three months isn't enough for us too put much weight on it, as a single factor.

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. From looking at our data, insiders own US$1.5m worth of Zentalis Pharmaceuticals stock, about 1.6% of the company. However, it's possible that insiders might have an indirect interest through a more complex structure. I generally like to see higher levels of ownership.

So What Does This Data Suggest About Zentalis Pharmaceuticals Insiders?

Our data shows a little insider buying, but no selling, in the last three months. That said, the purchases were not large. But insiders have shown more of an appetite for the stock, over the last year. The transactions are fine but it'd be more encouraging if Zentalis Pharmaceuticals insiders bought more shares in the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Zentalis Pharmaceuticals. At Simply Wall St, we found 3 warning signs for Zentalis Pharmaceuticals that deserve your attention before buying any shares.

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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.