Christoffel F. Wiese Spends R4.5m On Brait Stock

Potential Brait PLC (JSE:BAT) shareholders may wish to note that the Non-Executive Director, Christoffel F. Wiese, recently bought R4.5m worth of stock, paying R2.15 for each share. However, it only increased shareholding by a small percentage, and it wasn't a huge purchase by absolute value, either.

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The Last 12 Months Of Insider Transactions At Brait

In fact, the recent purchase by Non-Executive Director Christoffel F. Wiese was not their only trade of Brait shares this year. Earlier in the year, they sold shares at a price ofR2.13 per share in a -R138m transaction. So it's clear an insider wanted to take some cash off the table, even below the current price of R2.28. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent 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. It is worth noting that this sale was only 4.3% of Christoffel F. Wiese's holding.

Over the last year, we can see that insiders have bought 63.86m shares worth R128m. But insiders sold 64.47m shares worth R138m. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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I will like Brait 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 Of Brait

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Brait insiders own 38% of the company, worth about R3.3b. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Brait Tell Us?

It's certainly positive to see the recent insider purchase. But we can't say the same for the transactions over the last 12 months. The high levels of insider ownership, and the recent buying by an insider suggests they are well aligned and optimistic. Along with insider transactions, I recommend checking if Brait is growing revenue. This free chart of historic revenue and earnings should make that easy.

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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.