What percentage of Zip (ASX:Z1P) shares are owned by insiders?

What have insiders being doing with their shares in the BNPL company?
The post What percentage of Zip (ASX:Z1P) shares are owned by insiders? appeared first on The Motley Fool Australia. –

Zip Co Ltd (ASX: Z1P) shares have been struggling in recent months. The Aussie buy now, pay later (BNPL) company’s value is down more than 20% in the last 6 months and 5% in the last month alone.

Investors may be curious who is riding the highs and lows of share ownership in the Aussie company. Here’s a look at what company insiders are doing with their Zip shares right now.

Why does it matter?

Insider ownership may not seem like such a big deal to your average investor. However, it can be a really powerful indicator of support for the company’s future prospects.

Insiders such as the executive team (CEO, CFO etc) and board often own a stake in the company. That’s because it helps with compensation, but also with aligning incentives. After all, the board represents the interests of the company’s shareholders who own the shares themselves.

Ensuring a significant portion of an executive’s pay packet is tied up in shares or options also incentivises those individuals to boost the share price, which is what shareholders want.

That’s enough about the why, let’s take a look at how insider ownership looks with Zip shares.

How many Zip shares are owned by insiders?

Notably, founder and CEO Larry Diamond sold $13.77 million worth of Zip shares back on 15 April. Co-founder and COO Peter Gray also sold down $4.59 million worth of company shares on the same date.

Interestingly, that coincided with the start of a 30% decline in the Zip share price through to mid-May 2021.

It must be said that director share sales have been few and far between in recent times. That has been reflected with strong recent gains for the Aussie BNPL powerhouse. Zip shares have climbed 20.2% higher year to date and a whopping 833% in the past 5 years.

The recent sales by Mr Diamond and Mr Gray doesn’t mean that they have lost faith in Zip. Founders sell down for a variety of reasons such as liquidity and the recent sales represent a small portion of shares owned by the two.

In fact, Diamond Venture Holdings Pty Ltd is still the company’s top shareholder with a 10.99% stake while Mr Gray maintains a 3.09% stake and is within the top 10 investors.

The post What percentage of Zip (ASX:Z1P) shares are owned by insiders? appeared first on The Motley Fool Australia.

Should you invest $1,000 in Zip right now?

Before you consider Zip, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Zip wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

How has the Zip (ASX:Z1P) share price performed since reporting results?
3 exciting ASX tech shares to buy this month

Top broker says Zip (ASX:Z1P) share price can rise 22%
ASX 200 rises, Zip falls, Brambles sinks

Why Australian Ethical, Brambles, Novonix, & Zip shares are tumbling lower

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended ZIPCOLTD FPO. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!