Have Growthpoint Properties Insiders Been Selling Stock?

We'd be surprised if Growthpoint Properties Limited (JSE:GRT) shareholders haven't noticed that the Group CEO & Executive Director, Leon Sasse, recently sold R7.0m worth of stock at R13.32 per share. The eyebrow raising move amounted to a reduction of 10% in their holding.

See our latest analysis for Growthpoint Properties

The Last 12 Months Of Insider Transactions At Growthpoint Properties

Notably, that recent sale by Leon Sasse is the biggest insider sale of Growthpoint Properties shares that we've seen in the last year. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of R13.37. 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. This single sale was just 10% of Leon Sasse's stake.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Does Growthpoint Properties 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. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 0.3% of Growthpoint Properties shares, worth about R149m, according to our data. Whilst better than nothing, we're not overly impressed by these holdings.

So What Do The Growthpoint Properties Insider Transactions Indicate?

An insider sold Growthpoint Properties shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Case in point: We've spotted 5 warning signs for Growthpoint Properties you should be aware of, and 1 of them is potentially serious.

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 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.