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Consolidated Zinc Limited (ASX:CZL) insiders recover some losses but still US$2.8k away from matching original investment

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  • CZL.AX

Insiders who bought US$247k worth of Consolidated Zinc Limited (ASX:CZL) stock in the last year recovered part of their losses as the stock rose by 21% last week. However, the purchase is proving to be a costly gamble, since losses made by insiders have totalled US$2.8k since the time of purchase.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for Consolidated Zinc

Consolidated Zinc Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by insider Stephen Copulos for AU$200k worth of shares, at about AU$0.04 per share. That implies that an insider found the current price of AU$0.041 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. Happily, the Consolidated Zinc insider decided to buy shares at close to current prices. Stephen Copulos was the only individual insider to buy shares in the last twelve months. We note that Stephen Copulos was both the biggest buyer and the biggest seller.

Stephen Copulos purchased 5.97m shares over the year. The average price per share was AU$0.041. 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!


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.

Insider Ownership of Consolidated Zinc

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Consolidated Zinc insiders own 21% of the company, worth about AU$2.6m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Consolidated Zinc Tell Us?

It doesn't really mean much that no insider has traded Consolidated Zinc shares in the last quarter. However, our analysis of transactions over the last year is heartening. Insiders do have a stake in Consolidated Zinc and their transactions don't cause us concern. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. At Simply Wall St, we've found that Consolidated Zinc has 5 warning signs (3 shouldn't be ignored!) that deserve your attention before going any further with your analysis.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.