Independent Non-Executive Director of Zegona Communications Richard Williams Buys 2,313% More Shares
Whilst it may not be a huge deal, we thought it was good to see that the Zegona Communications plc (LON:ZEG) Independent Non-Executive Director, Richard Williams, recently bought UK£40k worth of stock, for UK£1.50 per share. Even though that isn't a massive buy, it did increase their holding by 2,313%, which is arguably a good sign.
Check out our latest analysis for Zegona Communications
The Last 12 Months Of Insider Transactions At Zegona Communications
In fact, the recent purchase by Richard Williams was the biggest purchase of Zegona Communications 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 UK£1.49. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
While Zegona Communications insiders bought shares during the last year, they didn't sell. 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!
Zegona Communications is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Zegona Communications Boast High Insider Ownership?
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. Zegona Communications insiders own about UK£3.0m worth of shares. That equates to 33% of the company. 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 Zegona Communications Insiders?
The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Given that insiders also own a fair bit of Zegona Communications we think they are probably pretty confident of a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Zegona Communications. For instance, we've identified 3 warning signs for Zegona Communications (1 doesn't sit too well with us) you should be aware of.
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 of direct interests only, but not derivative transactions or indirect interests.
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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.
