CEO & Executive Director Of Bidvest Group Sold 61% Of Their Shares

We wouldn't blame The Bidvest Group Limited (JSE:BVT) shareholders if they were a little worried about the fact that Nompumelelo Madisa, the CEO & Executive Director recently netted about R15m selling shares at an average price of R273. That diminished their holding by a very significant 61%, which arguably implies a strong desire to reallocate capital.

View our latest analysis for Bidvest Group

Bidvest Group Insider Transactions Over The Last Year

In fact, the recent sale by Nompumelelo Madisa was the biggest sale of Bidvest Group shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at around the current price of R273. While insider selling is a negative, to us, it is more negative if the shares are sold 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.

In the last year Bidvest Group insiders didn't buy any company stock. 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!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Does Bidvest Group Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Our data suggests Bidvest Group insiders own 0.04% of the company, worth about R40m. We prefer to see high levels of insider ownership.

So What Do The Bidvest Group Insider Transactions Indicate?

Insiders sold Bidvest Group shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. On the plus side, Bidvest Group makes money, and is growing profits. While insiders do own shares, they don't own a heap, and they have been selling. We're in no rush to buy! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 2 warning signs for Bidvest Group you should be aware of.

But note: Bidvest 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.