Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of Zinnwald Lithium Plc (LON:ZNWD), it sends a favourable message to the company's shareholders.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Zinnwald Lithium

Zinnwald Lithium Insider Transactions Over The Last Year

In fact, the recent purchase by Osman Rifaat was the biggest purchase of Zinnwald Lithium shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was higher than UK£0.10 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. We note that Osman Rifaat was also the biggest seller.

Happily, we note that in the last year insiders paid UK£111k for 1.03m shares. But insiders sold 1.03m shares worth UK£111k. Overall, Zinnwald Lithium insiders were net buyers during the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

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.

Are Zinnwald Lithium Insiders Buying Or Selling?

In the last quarter we saw insiders spend UK£111k on shares. But that was only a smidgen more than the UK£111k worth of sales. Looking at the net result, we don't think these recent trades shed much light on how insiders, as a group, are feeling about the company's prospects.

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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 12% of Zinnwald Lithium shares, worth about UK£5.9m, according to our data. We do generally prefer see higher levels of insider ownership.

So What Does This Data Suggest About Zinnwald Lithium Insiders?

We can't make any useful conclusions about recent trading, since insider buying and selling has been balanced. On a brighter note, the transactions over the last year are encouraging. The transactions are fine but it'd be more encouraging if Zinnwald Lithium insiders bought more shares in the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Zinnwald Lithium. For example, Zinnwald Lithium has 7 warning signs (and 5 which are potentially serious) we think you should know about.

Of course Zinnwald Lithium 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

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