Christian Phillipus Vorster Is The CEO & Executive Director of Stadio Holdings Limited (JSE:SDO) And Just Spent R100k On Shares

By
Simply Wall St
Published
September 06, 2021
JSE:SDO
Source: Shutterstock

Even if it's not a huge purchase, we think it was good to see that Christian Phillipus Vorster, the CEO & Executive Director of Stadio Holdings Limited (JSE:SDO) recently shelled out R100k to buy stock, at R2.93 per share. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.

See our latest analysis for Stadio Holdings

Stadio Holdings Insider Transactions Over The Last Year

In fact, the recent purchase by Christian Phillipus Vorster was the biggest purchase of Stadio Holdings shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of R3.18 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. Happily, the Stadio Holdings insiders decided to buy shares at close to current prices.

Stadio Holdings insiders may have bought shares in the last year, but they didn't sell any. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

insider-trading-volume
JSE:SDO Insider Trading Volume September 7th 2021

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

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. A high insider ownership often makes company leadership more mindful of shareholder interests. From looking at our data, insiders own R61m worth of Stadio Holdings stock, about 2.5% of the company. We consider this fairly low insider ownership.

What Might The Insider Transactions At Stadio Holdings Tell Us?

The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Given that insiders also own a fair bit of Stadio Holdings we think they are probably pretty confident of a bright future. 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 instance, we've identified 2 warning signs for Stadio Holdings (1 can't be ignored) you should be aware of.

But note: Stadio Holdings 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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