Johann Strydom Buys Handful Of Shares In Old Mutual

Those following along with Old Mutual Limited (JSE:OMU) will no doubt be intrigued by the recent purchase of shares by Johann Strydom, CEO & Director of the company, who spent a stonking R10.0m on stock at an average price of R13.27. There's no denying a buy of that magnitude suggests conviction in a brighter future, although we do note that proportionally it only increased their holding by -100%.

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The Last 12 Months Of Insider Transactions At Old Mutual

In fact, the recent purchase by Johann Strydom was the biggest purchase of Old Mutual 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 R13.46. Of course they may have changed their mind. But this suggests they are optimistic. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for Old Mutual share holders is that an insider was buying at near the current price. Johann Strydom was the only individual insider to buy during the last year.

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

Check out our latest analysis for Old Mutual

Old Mutual is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. From looking at our data, insiders own R38m worth of Old Mutual stock, about 0.07% of the company. We consider this fairly low insider ownership.

So What Do The Old Mutual Insider Transactions Indicate?

It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. Given that insiders also own a fair bit of Old Mutual we think they are probably pretty confident of a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Old Mutual. Case in point: We've spotted 1 warning sign for Old Mutual you should be aware of.

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 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.