When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Zentalis Pharmaceuticals, Inc.'s (NASDAQ:ZNTL) instance, it's good news for shareholders.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
Zentalis Pharmaceuticals Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Independent Chairman of the Board David Johnson for US$168k worth of shares, at about US$9.88 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$12.31. 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.
Over the last year, we can see that insiders have bought 22.00k shares worth US$219k. On the other hand they divested 4.90k shares, for US$56k. In the last twelve months there was more buying than selling by Zentalis Pharmaceuticals insiders. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
NasdaqGM:ZNTL Insider Trading Volume May 8th 2024
Zentalis Pharmaceuticals is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
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. It appears that Zentalis Pharmaceuticals insiders own 2.3% of the company, worth about US$20m. 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 Zentalis Pharmaceuticals Tell Us?
It doesn't really mean much that no insider has traded Zentalis Pharmaceuticals shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. Insiders own shares in Zentalis Pharmaceuticals and we see no evidence to suggest they are worried about the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Zentalis Pharmaceuticals. In terms of investment risks, we've identified 2 warning signs with Zentalis Pharmaceuticals and understanding these should be part of your investment process.
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 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.