Aspen Pharmacare Holdings Group CEO & Executive Director Acquires 1.6% More Stock

Those following along with Aspen Pharmacare Holdings Limited (JSE:APN) will no doubt be intrigued by the recent purchase of shares by Stephen Saad, Group CEO & Executive Director of the company, who spent a stonking R102m on stock at an average price of R119. While that only increased their holding size by 1.6%, it is still a big swing by our standards.

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The Last 12 Months Of Insider Transactions At Aspen Pharmacare Holdings

Notably, that recent purchase by Stephen Saad is the biggest insider purchase of Aspen Pharmacare Holdings shares that we've seen in the last year. So it's clear an insider wanted to buy, at around the current price, which is R126. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. In this case we're pleased to report that the insider bought shares at close to current prices. The only individual insider to buy over the last year was Stephen Saad.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

View our latest analysis for Aspen Pharmacare Holdings

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership Of Aspen Pharmacare Holdings

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Aspen Pharmacare Holdings insiders own 16% of the company, currently worth about R9.2b based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About Aspen Pharmacare Holdings Insiders?

The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Aspen Pharmacare Holdings. That's what I like to see! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 2 warning signs for Aspen Pharmacare Holdings you should be aware of, and 1 of them shouldn't be ignored.

But note: Aspen Pharmacare Holdings may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.