Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of Sabvest Capital Limited (JSE:SBP), that sends out a positive message to the company's shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
View our latest analysis for Sabvest Capital
The Last 12 Months Of Insider Transactions At Sabvest Capital
The Executive Director Leon Rood made the biggest insider purchase in the last 12 months. That single transaction was for R2.5m worth of shares at a price of R69.49 each. We do like to see buying, but this purchase was made at well below the current price of R83.70. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
While Sabvest Capital insiders bought shares during the last year, they didn't sell. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Sabvest Capital is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Does Sabvest Capital Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company 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. It's great to see that Sabvest Capital insiders own 44% of the company, worth about R1.5b. 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 Does This Data Suggest About Sabvest Capital Insiders?
There haven't been any insider transactions in the last three months -- that doesn't mean much. However, our analysis of transactions over the last year is heartening. With high insider ownership and encouraging transactions, it seems like Sabvest Capital insiders think the business has merit. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Sabvest Capital. In terms of investment risks, we've identified 1 warning sign with Sabvest Capital and understanding this should be part of your investment process.