CFO & Executive Director of Sabvest Capital Kyle De Matteis Buys 99% More Shares

Investors who take an interest in Sabvest Capital Limited (JSE:SBP) should definitely note that the CFO & Executive Director, Kyle De Matteis, recently paid R84.50 per share to buy R2.1m worth of the stock. We reckon that's a good sign, especially since the purchase boosted their holding by 99%.

Check out our latest analysis for Sabvest Capital

Sabvest Capital Insider Transactions Over The Last Year

In fact, the recent purchase by Kyle De Matteis was the biggest purchase of Sabvest Capital shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at around the current price of R89.56. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. In this case we're pleased to report that the insider bought shares at close to current prices. Kyle De Matteis was the only individual insider to buy shares in the last twelve months.

Kyle De Matteis purchased 50.00k shares over the year. The average price per share was R76.25. 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!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Insider Ownership Of Sabvest Capital

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. It's great to see that Sabvest Capital insiders own 42% of the company, worth about R1.5b. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About Sabvest Capital Insiders?

The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest Sabvest Capital insiders are well aligned, and quite possibly think the share price is too low. That's what I like to see! 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 - Sabvest Capital has 1 warning sign we think you should be aware of.

But note: Sabvest Capital 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.