Even if it's not a huge purchase, we think it was good to see that Iain Ross, the Independent Chairman of the Board of Kazia Therapeutics Limited (ASX:KZA) recently shelled out AU$51k to buy stock, at AU$0.41 per share. That purchase might not be huge but it did increase their holding by 19%.
The Last 12 Months Of Insider Transactions At Kazia Therapeutics
In fact, the recent purchase by Iain Ross was the biggest purchase of Kazia Therapeutics shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, at around the current price, which is AU$0.46. 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. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the Kazia Therapeutics insiders decided to buy shares at close to current prices.
While Kazia Therapeutics insiders bought shares during the last year, they didn't sell. They paid about AU$0.36 on average. To my mind it is good that insiders have invested their own money in the company. But we must note that the investments were made at well below today's share price of AU$0.46. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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.
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. Insiders own 7.8% of Kazia Therapeutics shares, worth about AU$3.0m, according to our data. But they may have an indirect interest through a corporate structure that we haven't picked up on. Whilst better than nothing, we're not overly impressed by these holdings.
So What Does This Data Suggest About Kazia Therapeutics Insiders?
The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Kazia Therapeutics insiders are reasonably well aligned, and optimistic for the future. 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. To help with this, we've discovered 6 warning signs (3 are a bit unpleasant!) that you ought to be aware of before buying any shares in Kazia Therapeutics.
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. 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. Thank you for reading.