Trade Alert: The Independent Chairman of Investec Property Limited Of Investec Australia Property Fund (JSE:IAP), Richard Longes, Has Just Spent AU$166k Buying 20% More Shares

Whilst it may not be a huge deal, we thought it was good to see that the Investec Australia Property Fund (JSE:IAP) Independent Chairman of Investec Property Limited, Richard Longes, recently bought R166k worth of stock, for R14.54 per share. While we're hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 20%.

Check out our latest analysis for Investec Australia Property Fund

The Last 12 Months Of Insider Transactions At Investec Australia Property Fund

The Independent Non-Executive Director of Investec Property Limited Georgina Lynch made the biggest insider purchase in the last 12 months. That single transaction was for R1.0m worth of shares at a price of R15.03 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being R14.00). Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

In the last twelve months Investec Australia Property Fund insiders were buying shares, but not selling. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Does Investec Australia Property Fund Boast High 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. I reckon it's a good sign if insiders own a significant number of shares in the company. From our data, it seems that Investec Australia Property Fund insiders own 1.0% of the company, worth about R87m. But they may have an indirect interest through a corporate structure that we haven't picked up on. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

So What Does This Data Suggest About Investec Australia Property Fund Insiders?

It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest Investec Australia Property Fund insiders are well aligned, and that they may think the share price is too low. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Investec Australia Property Fund. Every company has risks, and we've spotted 1 warning sign for Investec Australia Property Fund you should know about.

But note: Investec Australia Property Fund 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, but not derivative transactions.

If you decide to trade Investec Australia Property Fund, use the lowest-cost* platform that is rated #1 Overall by Barron’s, Interactive Brokers. Trade stocks, options, futures, forex, bonds and funds on 135 markets, all from a single integrated account. Promoted

This article by Simply Wall St is general in nature. 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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

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