Cadiz Insiders Placed Bullish Bets Worth US$726k
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 Cadiz Inc. (NASDAQ:CDZI), 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, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Check out our latest analysis for Cadiz
The Last 12 Months Of Insider Transactions At Cadiz
Over the last year, we can see that the biggest insider purchase was by insider Maria Jelescu-Dreyfus for US$350k worth of shares, at about US$3.50 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$4.19. 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. They paid about US$2.98 on average. We don't deny that it is nice to see insiders buying stock in the company. But we must note that the investments were made at well below today's share price. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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.
Insiders At Cadiz Have Bought Stock Recently
Over the last three months, we've seen significant insider buying at Cadiz. Overall, three insiders shelled out US$468k for shares in the company -- and none sold. This makes one think the business has some good points.
Does Cadiz Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 4.9% of Cadiz shares, worth about US$14m. 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 Cadiz Insiders?
It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. Insiders likely see value in Cadiz shares, given these transactions (along with notable insider ownership of the company). In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Cadiz. To that end, you should learn about the 4 warning signs we've spotted with Cadiz (including 2 which shouldn't be ignored).
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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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.
