When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Growthpoint Properties Limited's (JSE:GRT) instance, it's good news for shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
View our latest analysis for Growthpoint Properties
Growthpoint Properties Insider Transactions Over The Last Year
The Group CEO & Executive Director Leon Sasse made the biggest insider purchase in the last 12 months. That single transaction was for R4.9m worth of shares at a price of R10.12 each. So it's clear an insider wanted to buy, at around the current price, which is R10.90. That means they have been optimistic about the company in the past, though they may have changed their mind. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. The good news for Growthpoint Properties share holders is that insiders were buying at near the current price. We note that Leon Sasse was both the biggest buyer and the biggest seller.
In the last twelve months insiders purchased 1.08m shares for R11m. On the other hand they divested 899.10k shares, for R9.3m. Overall, Growthpoint Properties insiders were net buyers during the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Growthpoint Properties is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Growthpoint Properties Boast High 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. I reckon it's a good sign if insiders own a significant number of shares in the company. Based on our data, Growthpoint Properties insiders have about 0.2% of the stock, worth approximately R81m. We consider this fairly low insider ownership.
So What Do The Growthpoint Properties Insider Transactions Indicate?
The fact that there have been no Growthpoint Properties insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. Overall we don't see anything to make us think Growthpoint Properties insiders are doubting the company, and they do own shares. 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. Our analysis shows 4 warning signs for Growthpoint Properties (1 is concerning!) and we strongly recommend you look at these before investing.