Have Insiders Sold Alexander Forbes Group Holdings Shares Recently?

Anyone interested in Alexander Forbes Group Holdings Limited (JSE:AFH) should probably be aware that a company insider, Laura Kukard, recently divested R2.1m worth of shares in the company, at an average price of R7.26 each. Equally important, that sale actually reduced their holding by a full 100% which hardly makes us feel bullish about the stock.

Check out our latest analysis for Alexander Forbes Group Holdings

Alexander Forbes Group Holdings Insider Transactions Over The Last Year

In fact, the recent sale by Laura Kukard was the biggest sale of Alexander Forbes Group Holdings shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was below the current price of R7.50, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. We note that the biggest single sale was 100% of Laura Kukard's holding.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

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Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. From what we can see in our data, insiders own only about R170k worth of Alexander Forbes Group Holdings shares. This level of insider ownership is notably low, and not very encouraging.

So What Does This Data Suggest About Alexander Forbes Group Holdings Insiders?

An insider sold Alexander Forbes Group Holdings shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. But it is good to see that Alexander Forbes Group Holdings is growing earnings. When you consider that most companies have higher levels of insider ownership, we're a little wary. So we're not rushing to buy, to say the least. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Alexander Forbes Group Holdings. While conducting our analysis, we found that Alexander Forbes Group Holdings has 2 warning signs and it would be unwise to ignore these.

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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.

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