Have Afrimat Limited (JSE:AFT) Insiders Been Selling Their Stock?

We note that the Afrimat Limited (JSE:AFT) Independent Non Executive Director, Hendrik Johannes van Wyk, recently sold R301k worth of stock for R43.00 per share. However we note that the sale only shrunk their holding by 6.5%.

See our latest analysis for Afrimat

Afrimat Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the CEO & Executive Director, Andries van Heerden, for R992k worth of shares, at about R36.11 per share. That means that even when the share price was below the current price of R43.12, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. 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. We note that the biggest single sale was only 9.3% of Andries van Heerden's holding.

In the last year Afrimat insiders didn't buy any company stock. 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!

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Does Afrimat Boast High Insider Ownership?

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. We usually like to see fairly high levels of insider ownership. Insiders own 18% of Afrimat shares, worth about R1.1b. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The Afrimat Insider Transactions Indicate?

An insider sold Afrimat shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. On the plus side, Afrimat makes money, and is growing profits. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Afrimat. Case in point: We've spotted 1 warning sign for Afrimat 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, but not derivative transactions.

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