OUTsurance Group Insiders Placed Bullish Bets Worth R76.9m

Over the last year, a good number of insiders have significantly increased their holdings in OUTsurance Group Limited (JSE:OUT). This is encouraging because it indicates that insiders are more optimistic about the company's prospects.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for OUTsurance Group

OUTsurance Group Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when CFO & Executive Director Jan Hofmeyr bought R20m worth of shares at a price of R42.27 per share. We do like to see buying, but this purchase was made at well below the current price of R64.85. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

While OUTsurance Group insiders bought shares during the last year, they didn't sell. They paid about R46.63 on average. We don't deny that it is nice to see insiders buying stock in the company. However, we do note that they were buying at significantly lower prices than today's share price. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

OUTsurance Group 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.

Does OUTsurance Group 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. OUTsurance Group insiders own about R217m worth of shares. That equates to 0.2% of the company. 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 OUTsurance Group Insider Transactions Indicate?

It doesn't really mean much that no insider has traded OUTsurance Group shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. With high insider ownership and encouraging transactions, it seems like OUTsurance Group insiders think the business has merit. Therefore, you should definitely take a look at this FREE report showing analyst forecasts for OUTsurance Group.

Of course OUTsurance Group may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

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.