Zoetis Inc. (NYSE:ZTS) shareholders (or potential shareholders) will be happy to see that the Independent Director, Robert Scully, recently bought a whopping US$1.2m worth of stock, at a price of US$165. That purchase boosted their holding by 72%, which makes us wonder if the move was inspired by quietly confident deeply-felt optimism.
Zoetis Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the Director, Juan Alaix, for US$15m worth of shares, at about US$166 per share. So what is clear is that an insider saw fit to sell at around the current price of US$156. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.
Over the last year we saw more insider selling of Zoetis shares, than buying. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
I will like Zoetis better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
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. It appears that Zoetis insiders own 0.1% of the company, worth about US$96m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Does This Data Suggest About Zoetis Insiders?
It's certainly positive to see the recent insider purchase. On the other hand the transaction history, over the last year, isn't so positive. We don't take much heart from transactions by Zoetis insiders over the last year. But they own a reasonable amount of the company, and there was some buying recently. Overall they seem reasonably aligned. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Zoetis. For example - Zoetis has 1 warning sign we think you should be aware of.
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.
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