The Founder & Chairman of Cadiz Inc. (NASDAQ:CDZI), Keith Brackpool, Just Bought 8.7% More Shares
Investors who take an interest in Cadiz Inc. (NASDAQ:CDZI) should definitely note that the Founder & Chairman, Keith Brackpool, recently paid US$3.78 per share to buy US$113k worth of the stock. Although the purchase only increased their holding by 8.7%, it is still a solid purchase in our view.
See our latest analysis for Cadiz
Cadiz Insider Transactions Over The Last Year
Notably, that recent purchase by Keith Brackpool is the biggest insider purchase of Cadiz shares that we've seen in the last year. Even though the purchase was made at a significantly lower price than the recent price (US$4.26), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
Keith Brackpool bought a total of 55.00k shares over the year at an average price of US$3.70. 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 insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Cadiz Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Based on our data, Cadiz insiders have about 2.4% of the stock, worth approximately US$4.6m. But they may have an indirect interest through a corporate structure that we haven't picked up on. I generally like to see higher levels of ownership.
So What Do The Cadiz Insider Transactions Indicate?
It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Cadiz 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. When we did our research, we found 4 warning signs for Cadiz (2 don't sit too well with us!) that we believe deserve your full attention.
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.
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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.
