Insider Buying: Raubex Group CEO, Governance Bought R1.0m Of Shares

Whilst it may not be a huge deal, we thought it was good to see that the Raubex Group Limited (JSE:RBX) CEO, Governance, Ntombi Msiza, recently bought R1.0m worth of stock, for R40.58 per share. Nevertheless, it only increased their shareholding by a minuscule percentage, and it wasn't a massive purchase by absolute value, either.

This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality.

Raubex Group Insider Transactions Over The Last Year

The Non-Executive Chairman, Rudolf Fourie, made the biggest insider sale in the last 12 months. That single transaction was for R15m worth of shares at a price of R51.04 each. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of R40.27. So it may not shed much light on insider confidence at current levels.

In total, Raubex Group insiders sold more than they bought 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!

See our latest analysis for Raubex Group

I will like Raubex Group better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Based on our data, Raubex Group insiders have about 0.6% of the stock, worth approximately R42m. We prefer to see high levels of insider ownership.

What Might The Insider Transactions At Raubex Group Tell Us?

It's certainly positive to see the recent insider purchase. However, the longer term transactions are not so encouraging. We don't take much heart from transactions by Raubex Group insiders over the last year. But they own a reasonable amount of the company, and there was some buying recently. In short they are likely aligned with shareholders. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 1 warning sign with Raubex Group and understanding it should be part of your investment process.

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

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.