Bullish Capitec Bank Holdings Insiders Loaded Up On R24m Of Stock \

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 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 Capitec Bank Holdings

The Last 12 Months Of Insider Transactions At Capitec Bank Holdings

The CEO & Executive Director Gerhardus Fourie made the biggest insider purchase in the last 12 months. That single transaction was for R15m worth of shares at a price of R1,687 each. That means that an insider was happy to buy shares at above the current price of R1,479. Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

In the last twelve months insiders purchased 14.60k shares for 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. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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 fact, three insiders bought R3.2m worth of shares. On the other hand, insider Graham Lee netted R530k by selling. Insiders have spent more buying shares than they have selling, so on balance we think they are are probably optimistic.

Does Capitec Bank Holdings 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. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Capitec Bank Holdings insiders own 19% of the company, worth about R33b. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Capitec Bank Holdings Tell Us?

It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Capitec Bank Holdings. Looks promising! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Capitec Bank Holdings. At Simply Wall St, we found 1 warning sign for Capitec Bank Holdings that deserve your attention before buying any shares.

Of course Capitec Bank 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.

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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.