Positive Signs As Multiple Insiders Buy ZYUS Life Sciences Stock
Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of ZYUS Life Sciences Corporation (CVE:ZYUS), it sends a favourable message to the company's shareholders.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
View our latest analysis for ZYUS Life Sciences
ZYUS Life Sciences Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when President Brent Zettl bought CA$169k worth of shares at a price of CA$0.92 per share. That means that an insider was happy to buy shares at around the current price of CA$1.00. Of course they may have changed their mind. But this suggests they are optimistic. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for ZYUS Life Sciences share holders is that insiders were buying at near the current price. We note that Brent Zettl was both the biggest buyer and the biggest seller.
Happily, we note that in the last year insiders paid CA$202k for 216.35k shares. But insiders sold 184.00k shares worth CA$169k. In the last twelve months there was more buying than selling by ZYUS Life Sciences insiders. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
ZYUS Life Sciences 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.
Insiders At ZYUS Life Sciences Have Bought Stock Recently
Over the last three months, we've seen a bit of insider buying at ZYUS Life Sciences. They bought CA$194k worth in that time. However, President Brent Zettl netted CA$169k for sales. While it's good to see the insider buying, the net amount bought isn't enough for us to gain much confidence from it.
Insider Ownership Of ZYUS Life Sciences
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. It's great to see that ZYUS Life Sciences insiders own 54% of the company, worth about CA$38m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Does This Data Suggest About ZYUS Life Sciences Insiders?
Our data shows a little insider buying, but no selling, in the last three months. That said, the purchases were not large. On a brighter note, the transactions over the last year are encouraging. With high insider ownership and encouraging transactions, it seems like ZYUS Life Sciences insiders think the business has merit. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Our analysis shows 3 warning signs for ZYUS Life Sciences (1 shouldn't be ignored!) and we strongly recommend you look at these before investing.
But note: ZYUS Life Sciences may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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 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.