NASDAQ:ZVO), you may well want to know whether insiders have been buying or selling.” data-reactid=”28″>It is not uncommon to see companies perform well in the years after insiders buy shares. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So before you buy or sell Zovio Inc (NASDAQ:ZVO), you may well want to know whether insiders have been buying or selling.
What Is Insider Buying?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock in the company. However, most countries require that the company discloses such transactions to the market.
study found that ‘insider purchases earn abnormal returns of more than 6% per year’.” data-reactid=”31″>We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Harvard University study found that ‘insider purchases earn abnormal returns of more than 6% per year’.
View our latest analysis for Zovio ” data-reactid=”36″>View our latest analysis for Zovio
Zovio Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Co-Founder Andrew Clark bought US$387k worth of shares at a price of US$2.58 per share. We do like to see buying, but this purchase was made at well below the current price of US$5.05. Because the shares were purchased at a lower price, this particular buy doesn’t tell us much about how insiders feel about the current share price.
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!
list of growing companies with insider buying.” data-reactid=”52″>Zovio is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership of Zovio
Many investors like to check how much of a company is owned by 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. Our data indicates that Zovio insiders own about US$6.9m worth of shares (which is 5.5% of the company). Whilst better than nothing, we’re not overly impressed by these holdings.
So What Does This Data Suggest About Zovio Insiders?
we’ve identified 3 warning signs with Zovio and understanding them should be part of your investment process.” data-reactid=”56″>There haven’t been any insider transactions in the last three months — that doesn’t mean much. But insiders have shown more of an appetite for the stock, over the last year. While we have no worries about the insider transactions, we’d be more comfortable if they owned more Zovio stock. So while it’s helpful to know what insiders are doing in terms of buying or selling, it’s also helpful to know the risks that a particular company is facing. In terms of investment risks, we’ve identified 3 warning signs with Zovio and understanding them should be part of your investment process.
collection of high quality companies.” data-reactid=”57″>Of course Zovio may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
Get in touch with us directly. Alternatively, email [email protected].” data-reactid=”59″>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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected].
