Have Insiders Sold Stadio Holdings Shares Recently?

We'd be surprised if Stadio Holdings Limited (JSE:SDO) shareholders haven't noticed that the Non-Executive Director, Christiaan Van Der Merwe, recently sold R5.0m worth of stock at R5.00 per share. That sale was 12% of their holding, so it does make us raise an eyebrow.

Check out our latest analysis for Stadio Holdings

The Last 12 Months Of Insider Transactions At Stadio Holdings

Notably, that recent sale by Christiaan Van Der Merwe is the biggest insider sale of Stadio Holdings shares that we've seen in the last year. That means that an insider was selling shares at around the current price of R4.95. While we don't usually like to see insider selling, it's more concerning if the sales take place 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 twelve months insiders purchased 179.58k shares for R874k. But they sold 2.32m shares for R11m. Over the last year we saw more insider selling of Stadio Holdings shares, than buying. The chart below shows insider transactions (by companies and individuals) over the last year. 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).

Insider Ownership Of Stadio Holdings

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 4.0% of Stadio Holdings shares, worth about R169m, according to our data. However, it's possible that insiders might have an indirect interest through a more complex structure. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

What Might The Insider Transactions At Stadio Holdings Tell Us?

The stark truth for Stadio Holdings is that there has been more insider selling than insider buying in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. On the plus side, Stadio Holdings makes money, and is growing profits. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 1 warning sign for Stadio Holdings you should know about.

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 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.