Possible Bearish Signals With Sanlam Insiders Disposing Stock
In the last year, many Sanlam Limited (JSE:SLM) insiders sold a substantial stake in the company which may have sparked shareholders' attention. Knowing whether insiders are buying is usually more helpful when evaluating insider transactions, as insider selling can have various explanations. However, when multiple insiders sell stock over a specific duration, shareholders should take notice as that could possibly be a red flag.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Sanlam Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the Group CEO & Executive Director, Paul Hanratty, sold R40m worth of shares at a price of R91.43 per share. So we know that an insider sold shares at around the present share price of R88.00. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive). Notably Paul Hanratty was also the biggest buyer, having purchased R29m worth of shares.
Happily, we note that in the last year insiders paid R29m for 321.64k shares. On the other hand they divested 467.08k shares, for R43m. Over the last year we saw more insider selling of Sanlam shares, than buying. 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!
View our latest analysis for Sanlam
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).
Insiders At Sanlam Have Bought Stock Recently
It's good to see that Sanlam insiders have made notable investments in the company's shares. Finance Director & Executive Director Abigail Mukhuba spent R5.3m on stock, and there wasn't any selling. That shows some optimism about the company's future.
Insider Ownership Of Sanlam
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Sanlam insiders own 0.3% of the company, worth about R528m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At Sanlam Tell Us?
The recent insider purchase is heartening. On the other hand the transaction history, over the last year, isn't so positive. The recent buying by an insider , along with high insider ownership, suggest that Sanlam insiders are fairly aligned, and optimistic. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
Of course Sanlam 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 of direct interests only, but not derivative transactions or indirect interests.
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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.