One Capitec Bank Holdings Limited (JSE:CPI) insider reduced their stake by 2.6% in the previous year

Viewing insider transactions for Capitec Bank Holdings Limited's (JSE:CPI ) over the last year, we see that insiders were net sellers. This means that a larger number of shares were sold by insiders in relation to shares purchased.

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.

Check out our latest analysis for Capitec Bank Holdings

Capitec Bank Holdings Insider Transactions Over The Last Year

The CEO & Executive Director, Gerhardus Fourie, made the biggest insider sale in the last 12 months. That single transaction was for R56m worth of shares at a price of R2,131 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of R1,816. So it may not tell us anything about how insiders feel about the current share price. The only individual insider seller over the last year was Gerhardus Fourie. Notably Gerhardus Fourie was also the biggest buyer, having purchased R24m worth of shares.

In the last twelve months insiders purchased 14.33k shares for R24m. On the other hand they divested 26.39k shares, for R56m. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

I will like Capitec Bank Holdings better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Does Capitec Bank Holdings Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Capitec Bank Holdings insiders own 20% of the company, currently worth about R42b based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About Capitec Bank Holdings Insiders?

There haven't been any insider transactions in the last three months -- that doesn't mean much. It's heartening that insiders own plenty of stock, but we'd like to see more insider buying, since the last year of Capitec Bank Holdings insider transactions don't fill us with confidence. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Case in point: We've spotted 1 warning sign for Capitec Bank Holdings you should be aware of.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.