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Bullish insiders at ZIOPHARM Oncology, Inc. (NASDAQ:ZIOP) loaded up on US$639k of stock earlier this year

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  • ZIOP

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 ZIOPHARM Oncology, Inc. (NASDAQ:ZIOP), it sends a favourable message to the company's shareholders.

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.

Check out our latest analysis for ZIOPHARM Oncology

ZIOPHARM Oncology Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when insider Jaime Vieser bought US$191k worth of shares at a price of US$1.91 per share. That means that an insider was happy to buy shares at above the current price of US$1.43. 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. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

ZIOPHARM Oncology insiders may have bought shares in the last year, but they didn't sell any. 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!

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insider-trading-volume

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Insiders at ZIOPHARM Oncology Have Bought Stock Recently

It's good to see that ZIOPHARM Oncology insiders have made notable investments in the company's shares. Overall, six insiders shelled out US$639k for shares in the company -- and none sold. This could be interpreted as suggesting a positive outlook.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Insiders own 6.8% of ZIOPHARM Oncology shares, worth about US$21m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At ZIOPHARM Oncology Tell Us?

It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest ZIOPHARM Oncology insiders are well aligned, and that they may think the share price is too low. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing ZIOPHARM Oncology. Be aware that ZIOPHARM Oncology is showing 3 warning signs in our investment analysis, and 1 of those doesn't sit too well with us...

But note: ZIOPHARM Oncology 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, but not derivative transactions.

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.

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