Whilst it may not be a huge deal, we thought it was good to see that the Zodiac Energy Limited (NSE:ZODIAC) Founder, Kunjbihari Shah, recently bought ₹120k worth of stock, for ₹30.00 per share. Nevertheless, it only increased their shareholding by a minuscule percentage, and it wasn’t a massive purchase by absolute value, either.
Check out our latest analysis for Zodiac Energy
Zodiac Energy Insider Transactions Over The Last Year
Founder Kunjbihari Shah previously made an even bigger purchase of ₹1.0m worth of shares at a price of ₹28.04 per share. So it’s clear an insider wanted to buy, even at a higher price than the current share price (being ₹27.85). 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.
Zodiac Energy insiders may have bought shares in the last year, but they didn’t sell any. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Zodiac Energy is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Does Zodiac Energy Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Zodiac Energy insiders own about ₹323m worth of shares (which is 79% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Does This Data Suggest About Zodiac Energy Insiders?
It’s certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Zodiac Energy. One for the watchlist, at least! 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. Every company has risks, and we’ve spotted 1 warning sign for Zodiac Energy you should know about.
Of course Zodiac Energy may not be the best stock to buy. So you may wish to see this free collection of high quality 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.