A Absa Group Limited (JSE:ABG) insider lowered their holding by 41% earlier this year

Insiders were net sellers of Absa Group Limited's (JSE:ABG ) stock during the past year. That is, insiders sold more stock than they bought.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for Absa Group

The Last 12 Months Of Insider Transactions At Absa Group

In the last twelve months, the biggest single sale by an insider was when the Group Financial Director, Jason Quinn, sold R8.8m worth of shares at a price of R178 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of R199. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 41% of Jason Quinn's stake. The only individual insider seller over the last year was Jason Quinn.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Insider Ownership

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Based on our data, Absa Group insiders have about 0.05% of the stock, worth approximately R83m. I generally like to see higher levels of ownership.

So What Does This Data Suggest About Absa Group Insiders?

The fact that there have been no Absa Group insider transactions recently certainly doesn't bother us. Our analysis of Absa Group insider transactions leaves us cautious. The modest level of insider ownership is, at least, some comfort. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Absa Group. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Absa Group.

Of course Absa 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, but not derivative transactions.

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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.