Nedbank Group Limited (JSE:NED) insiders made a handsome profit after selling stock presently valued at R212 apiece for R222

Last week, Nedbank Group Limited's (JSE:NED) stock jumped 3.8%, but insiders who sold R5.9m worth of stock in over the past year are likely to be in a better position. Selling at an average price of R222, which is higher than the current price, may have been the best move for these insiders because their investment would have been worth less now than when they sold.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Nedbank Group

Nedbank Group Insider Transactions Over The Last Year

The Group Managing Executive of Nedbank Wealth, Iolanda Ruggiero, made the biggest insider sale in the last 12 months. That single transaction was for R2.3m worth of shares at a price of R221 each. That means that an insider was selling shares at around the current price of R212. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

Nedbank Group insiders didn't buy any shares over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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

Insiders at Nedbank Group Have Sold Stock Recently

The last three months saw significant insider selling at Nedbank Group. Specifically, insiders ditched R4.5m worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.

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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 0.5% of Nedbank Group shares, worth about R513m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About Nedbank Group Insiders?

Insiders sold Nedbank Group shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. But it is good to see that Nedbank Group is growing earnings. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Nedbank Group. Be aware that Nedbank Group is showing 3 warning signs in our investment analysis, and 1 of those can't be ignored...

Of course Nedbank 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.