Insider Stock Buying Reaches R19.9m On Growthpoint Properties

Over the last year, a good number of insiders have significantly increased their holdings in Growthpoint Properties Limited (JSE:GRT). This is encouraging because it indicates that insiders are more optimistic about the company's prospects.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early.

Growthpoint Properties Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Group CEO & Executive Director Leon Sasse for R20m worth of shares, at about R15.24 per share. That implies that an insider found the current price of R15.52 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. Happily, the Growthpoint Properties insiders decided to buy shares at close to current prices. We note that Leon Sasse was both the biggest buyer and the biggest seller.

Happily, we note that in the last year insiders paid R20m for 1.30m shares. But insiders sold 1.27m shares worth R18m. In the last twelve months there was more buying than selling by Growthpoint Properties insiders. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

View our latest analysis for Growthpoint Properties

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).

Insiders At Growthpoint Properties Have Bought Stock Recently

At Growthpoint Properties,over the last quarter, we have observed quite a lot more insider buying than insider selling. In fact, two insiders bought R20m worth of shares. But we did see Group CEO & Executive Director Leon Sasse sell shares worth R8.9m. The buying outweighs the selling, which suggests that insiders may believe the company will do well in the future.

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 0.3% of Growthpoint Properties shares, worth about R157m, according to our data. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

What Might The Insider Transactions At Growthpoint Properties Tell Us?

The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Growthpoint Properties. Looks promising! 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. To help with this, we've discovered 3 warning signs (1 is concerning!) that you ought to be aware of before buying any shares in Growthpoint Properties.

Of course Growthpoint Properties may not be the best stock to buy. So you may wish to see this free collection of high quality 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.