Don't Ignore The Insider Selling In Vodacom Group
Some Vodacom Group Limited (JSE:VOD) shareholders may be a little concerned to see that the CEO & Executive Director, Mohamed Shameel Joosub, recently sold a substantial R17m worth of stock at a price of R163 per share. However, that sale only accounted for 6.5% of their holding, so arguably it doesn't say much about their conviction.
The Last 12 Months Of Insider Transactions At Vodacom Group
In fact, the recent sale by Mohamed Shameel Joosub was the biggest sale of Vodacom Group shares made by an insider individual in the last twelve months, according to our records. So we know that an insider sold shares at around the present share price of R158. While we don't usually like to see insider selling, it's more concerning if the sales take place 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).
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!
Check out our latest analysis for Vodacom Group
For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.
Does Vodacom Group Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Insiders own 0.08% of Vodacom Group shares, worth about R245m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At Vodacom Group Tell Us?
An insider sold Vodacom Group shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. On the plus side, Vodacom Group makes money, and is growing profits. It is good to see high insider ownership, but the insider selling leaves us cautious. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. You'd be interested to know, that we found 2 warning signs for Vodacom Group and we suggest you have a look.
Of course Vodacom Group 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.