Insiders at Cadiz Inc. (NASDAQ:CDZI) snagged a bargain: a US$437k profit on a US$641k buy

Cadiz Inc. (NASDAQ:CDZI) insiders who acquired shares over the previous 12 months, can probably afford to ignore the recent 12% decline in the stock price. Reason being, despite the recent loss, insiders original purchase value of US$641k is now worth US$1.1m.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for Cadiz

The Last 12 Months Of Insider Transactions At Cadiz

The Founder & Non-Executive Director Keith Brackpool made the biggest insider purchase in the last 12 months. That single transaction was for US$394k worth of shares at a price of US$2.00 each. We do like to see buying, but this purchase was made at well below the current price of US$3.51. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

While Cadiz insiders bought shares during the last year, they didn't sell. 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!

Cadiz is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Does Cadiz Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. Cadiz insiders own about US$11m worth of shares. That equates to 4.7% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Cadiz Tell Us?

It doesn't really mean much that no insider has traded Cadiz shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Insiders own shares in Cadiz and we see no evidence to suggest they are worried about the future. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. When we did our research, we found 4 warning signs for Cadiz (1 is potentially serious!) that we believe deserve your full attention.

Of course Cadiz may not be the best stock to buy. So you may wish to see this free collection of high quality 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, but not derivative transactions.

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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.