Bullish Standard Bank Group Insiders Loaded Up On R50.5m Of Stock

Over the last year, a good number of insiders have significantly increased their holdings in Standard Bank Group Limited (JSE:SBK). This is encouraging because it indicates that insiders are more optimistic about the company's prospects.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Standard Bank Group

The Last 12 Months Of Insider Transactions At Standard Bank Group

Over the last year, we can see that the biggest insider purchase was by Group CEO & Executive Director Simpiwe Tshabalala for R20m worth of shares, at about R185 per share. That means that an insider was happy to buy shares at above the current price of R168. It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. 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 272.72k shares for R51m. On the other hand they divested 135.70k shares, for R26m. Overall, Standard Bank Group insiders were net buyers during the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Standard Bank Group 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 Standard Bank Group Have Bought Stock Recently

Over the last quarter, Standard Bank Group insiders have spent a meaningful amount on shares. Overall, four insiders shelled out R50m for shares in the company -- and none sold. This could be interpreted as suggesting a positive outlook.

Does Standard Bank Group Boast High 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. We usually like to see fairly high levels of insider ownership. Insiders own 0.1% of Standard Bank Group shares, worth about R289m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About Standard Bank Group Insiders?

The recent insider purchases are heartening. 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 Standard Bank Group. Looks promising! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For example - Standard Bank Group has 1 warning sign we think you should be aware of.

But note: Standard Bank Group may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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 of direct interests only, but not derivative transactions or indirect interests.

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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.