Growthpoint Properties Insiders Added R11.2m Of Stock To Their Holdings

It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Growthpoint Properties Limited's (JSE:GRT) case, it's fantastic news for shareholders.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for Growthpoint Properties

Growthpoint Properties Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Group CEO & Executive Director Leon Sasse bought R4.9m worth of shares at a price of R10.12 per share. We do like to see buying, but this purchase was made at well below the current price of R13.00. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

Happily, we note that in the last year insiders paid R11m for 1.08m shares. On the other hand they divested 892.50k shares, for R9.2m. Overall, Growthpoint Properties insiders were net buyers during the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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).

Does Growthpoint Properties Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data indicates that Growthpoint Properties insiders own about R97m worth of shares (which is 0.2% of the company). We do generally prefer see higher levels of insider ownership.

What Might The Insider Transactions At Growthpoint Properties Tell Us?

The fact that there have been no Growthpoint Properties insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. Insiders own shares in Growthpoint Properties and we see no evidence to suggest they are worried about the future. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Be aware that Growthpoint Properties is showing 4 warning signs in our investment analysis, and 1 of those is significant...

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.