For Impala Platinum Holdings Limited (JSE:IMP) insiders, selling R152m worth of stock earlier this year was a smart move.

By
Simply Wall St
Published
October 17, 2021
JSE:IMP
Source: Shutterstock

Despite the fact that Impala Platinum Holdings Limited (JSE:IMP) stock rose 9.4% last week, insiders who sold R152m worth of stock in the previous 12 months are likely to be better off. Holding on to stock would have meant their investment would be worth less now than it was at the time of sale. Thus selling at an average price of R260, which is higher than the current price, may have been the best decision.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for Impala Platinum Holdings

Impala Platinum Holdings Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the CEO & Executive Director, Nicolaas Muller, sold R89m worth of shares at a price of R266 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (R221). So it is hard to draw any strong conclusion from it.

Insiders in Impala Platinum Holdings didn't buy any shares in the last year. 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!

insider-trading-volume
JSE:IMP Insider Trading Volume October 18th 2021

I will like Impala Platinum Holdings better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Insider Ownership of Impala Platinum Holdings

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. From looking at our data, insiders own R42m worth of Impala Platinum Holdings stock, about 0.02% of the company. We prefer to see high levels of insider ownership.

So What Does This Data Suggest About Impala Platinum Holdings Insiders?

There haven't been any insider transactions in the last three months -- that doesn't mean much. Still, the insider transactions at Impala Platinum Holdings in the last 12 months are not very heartening. But we do like the fact that insiders own a fair chunk of the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Impala Platinum Holdings. Our analysis shows 4 warning signs for Impala Platinum Holdings (1 doesn't sit too well with us!) and we strongly recommend you look at them before investing.

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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