Yahoo Finance Chairman & Independent Lead Director Sarah Fay Just Bought 12% More Shares In Ziff Davis, Inc. (NASDAQ:ZD)
Investors who take an interest in Ziff Davis, Inc. (NASDAQ:ZD) should definitely note that the Chairman & Independent Lead Director, Sarah Fay, recently paid US$86.49 per share to buy US$101k worth of the stock. That's a very solid buy in our book, and increased their holding by a noteworthy 12%.
View our latest analysis for Ziff Davis
Ziff Davis Insider Transactions Over The Last Year
In fact, the recent purchase by Sarah Fay was the biggest purchase of Ziff Davis 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 US$82.67 (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. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
While Ziff Davis 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. By clicking on the graph below, you can see the precise details of each insider transaction!
Ziff Davis is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Ziff Davis insiders own about US$159m worth of shares (which is 4.1% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Do The Ziff Davis Insider Transactions Indicate?
It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest Ziff Davis insiders are well aligned, and quite possibly think the share price is too low. Looks promising! 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. In terms of investment risks, we've identified 1 warning sign with Ziff Davis and understanding it should be part of your investment process.
But note: Ziff Davis may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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, 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.
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