Shares of Zedcor Inc. (CVE:ZDC) experienced a sharp decline of 16.6% on Wednesday, falling to a low of C$4.39 before closing at C$4.76. This drop followed a significant increase in trading volume, with 3,164,198 shares exchanging hands, marking a 186% rise compared to the average session volume of 1,107,573 shares. The stock’s previous close was C$5.71.
Market Reactions and Analyst Insights
Zedcor has recently been the subject of various research reports from investment analysts. On December 12, 2023, Ventum Financial set a price target of C$8.70 for Zedcor shares, rating the company as a “buy”. Just prior, on October 17, 2023, Canaccord Genuity Group raised their target price from C$5.25 to C$7.00. Similarly, Desjardins set a target of C$7.50 and classified the stock as a “buy” on October 23, 2023. National Bankshares also increased their price objective from C$5.50 to C$7.50, assigning an “outperform” rating on October 9, 2023.
Currently, analysts are generally optimistic about Zedcor. According to data from MarketBeat.com, the company holds a consensus rating of “buy” with an average target price of C$7.54. There are two analysts who have issued a “Strong Buy” rating while four others have assigned a “Buy” rating to the stock.
Insider Transactions Impacting Investor Sentiment
In a related development, insider trading activity may have contributed to the stock’s downturn. On October 27, 2023, Director Dean Sylvan Swanberg sold 1,000,000 shares at an average price of C$6.50, totaling C$6,500,000. Post-sale, his ownership in Zedcor decreased by 6.10%, leaving him with approximately 15,400,000 shares, valued at about C$100,100,000.
Another significant insider transaction involved Director Dean Myles Shillington, who sold 2,000,000 shares at an average price of C$6.45, resulting in a total of C$12,900,000. Following this transaction, Shillington’s stake was reduced by 72.86%, with his remaining 744,905 shares valued at approximately C$4,804,637.25. Over the past 90 days, insiders have sold a total of 4,501,800 shares worth around C$28,785,530. Currently, company insiders hold 30.15% of Zedcor’s stock.
Zedcor Inc. specializes in providing technology-based security and surveillance services across Canada. Their offerings include the rental, service, and remote monitoring of proprietary MobileyeZ security towers, in addition to fixed-site surveillance and security personnel. The company caters to various sectors, including construction, mining, oil and gas, and retail, among others.
As market dynamics continue to evolve, investors will be closely monitoring Zedcor’s performance and the implications of insider trading on stock value.
