Stock Analysis

Insider Buying: The Salungano Group Limited (JSE:SLG) Group CEO & Executive Director Just Bought 13% More Shares

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Salungano Group Limited (JSE:SLG) shareholders (or potential shareholders) will be happy to see that the Group CEO & Executive Director, Muthanyi Ramaite, recently bought a whopping R9.4m worth of stock, at a price of R1.15. Not only is that a big swing, but it increased their holding size by 13%, which is definitely great to see.

Check out our latest analysis for Salungano Group

Salungano Group Insider Transactions Over The Last Year

Notably, that recent purchase by Muthanyi Ramaite is the biggest insider purchase of Salungano Group shares that we've seen in the last year. That implies that an insider found the current price of R1.22 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the Salungano Group insiders decided to buy shares at close to current prices.

In the last twelve months Salungano Group insiders were buying shares, but not selling. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

JSE:SLG Insider Trading Volume February 5th 2023

Salungano Group is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Does Salungano Group Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Salungano Group insiders own 25% of the company, worth about R121m. 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 Do The Salungano Group Insider Transactions Indicate?

The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Salungano Group. One for the watchlist, at least! 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, Salungano Group has 5 warning signs (and 2 which are a bit concerning) we think you should know about.

But note: Salungano 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, but not derivative transactions.

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