Potential Zogenix, Inc. (NASDAQ:ZGNX) shareholders may wish to note that the Co-founder & Chairman, Cam Garner, recently bought US$175k worth of stock, paying US$21.83 for each share. That's a very decent purchase to our minds and it grew their holding by a solid 20%.
The Last 12 Months Of Insider Transactions At Zogenix
In fact, the recent purchase by Cam Garner was the biggest purchase of Zogenix shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at above the current price of US$19.69. 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. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
Zogenix 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 individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership of Zogenix
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data suggests Zogenix insiders own 0.4% of the company, worth about US$3.7m. We consider this fairly low insider ownership.
What Might The Insider Transactions At Zogenix Tell Us?
The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Zogenix insiders are reasonably well aligned, and optimistic for the future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we found 3 warning signs for Zogenix that deserve your attention before buying any shares.
But note: Zogenix 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.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
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