Independent Non-Executive Chairperson Yvonne Muthien Just Bought 40% More Shares In RFG Holdings Limited (JSE:RFG)

Even if it's not a huge purchase, we think it was good to see that Yvonne Muthien, the Independent Non-Executive Chairperson of RFG Holdings Limited (JSE:RFG) recently shelled out R198k to buy stock, at R12.50 per share. That purchase might not be huge but it did increase their holding by 40%.

View our latest analysis for RFG Holdings

RFG Holdings Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Managing Director of Fresh Foods, Constantine Costaras, sold R8.7m worth of shares at a price of R13.25 per share. So we know that an insider sold shares at around the present share price of R12.50. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign. Constantine Costaras was the only individual insider to sell shares in the last twelve months.

Happily, we note that in the last year insiders paid R309k for 23.79k shares. But insiders sold 660.00k shares worth R8.7m. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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).

Does RFG Holdings Boast High 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 10.0% of RFG Holdings shares, worth about R326m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The RFG Holdings Insider Transactions Indicate?

The recent insider purchase is heartening. On the other hand the transaction history, over the last year, isn't so positive. The recent buying by an insider , along with high insider ownership, suggest that RFG Holdings insiders are fairly aligned, and optimistic. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. At Simply Wall St, we found 1 warning sign for RFG Holdings that deserve your attention before buying any shares.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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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This article by Simply Wall St is general in nature. 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.
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