It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Stadio Holdings Limited's (JSE:SDO) case, it's fantastic 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, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for Stadio Holdings

The Last 12 Months Of Insider Transactions At Stadio Holdings

The Non-Executive Director Christiaan Van Der Merwe made the biggest insider purchase in the last 12 months. That single transaction was for R5.0m worth of shares at a price of R3.80 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of R4.68. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Stadio Holdings insiders may have bought shares in the last year, but they didn't sell any. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Stadio Holdings 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.

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Our data indicates that Stadio Holdings insiders own about R120m worth of shares (which is 3.0% of the company). We do generally prefer see higher levels of insider ownership.

So What Does This Data Suggest About Stadio Holdings Insiders?

It doesn't really mean much that no insider has traded Stadio Holdings shares in the last quarter. However, our analysis of transactions over the last year is heartening. Judging from their transactions, and high insider ownership, Stadio Holdings insiders feel good about the company's future. Along with insider transactions, I recommend checking if Stadio Holdings is growing revenue. This free chart of historic revenue and earnings should make that easy.

Of course Stadio Holdings may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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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