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Quite a few insiders have dramatically grown their holdings in Capitec Bank Holdings Limited (JSE:CPI) over the past 12 months. An insider's optimism about the company's prospects is a positive sign.
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.
View our latest analysis for Capitec Bank Holdings
Capitec Bank Holdings Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by CEO & Executive Director Gerhardus Fourie for R15m worth of shares, at about R1,687 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being R1,403). It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
Over the last year, we can see that insiders have bought 14.60k shares worth R24m. On the other hand they divested 330.00 shares, for R530k. In total, Capitec Bank Holdings insiders bought more than they sold over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
Capitec Bank 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.
Insiders At Capitec Bank Holdings Have Bought Stock Recently
There has been significantly more insider buying, than selling, at Capitec Bank Holdings, over the last three months. In total, three insiders bought R3.2m worth of shares in that time. But we did see insider Graham Lee sell shares worth R530k. The buying outweighs the selling, which suggests that insiders may believe the company will do well in the future.
Insider Ownership Of Capitec Bank Holdings
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Capitec Bank Holdings insiders own about R32b worth of shares (which is 19% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.