Michael Flax Is The Non-Executive Deputy Chairman of Spear Reit Limited (JSE:SEA) And They Just Picked Up 6.5% More Shares

Investors who take an interest in Spear Reit Limited (JSE:SEA) should definitely note that the Non-Executive Deputy Chairman, Michael Flax, recently paid R4.46 per share to buy R6.1m worth of the stock. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 6.5%.

Check out our latest analysis for Spear Reit

The Last 12 Months Of Insider Transactions At Spear Reit

Notably, that recent purchase by Michael Flax is the biggest insider purchase of Spear Reit shares that we've seen in the last year. That implies that an insider found the current price of R5.30 per share to be enticing. 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. The good news for Spear Reit share holders is that insiders were buying at near the current price.

In the last twelve months insiders purchased 2.53m shares for R13m. But they sold 400.00k shares for R3.0m. In total, Spear Reit insiders bought more than they sold over the last year. The average buy price was around R5.07. Although they bought at below the recent share price, it is good to see that insiders are willing to invest in the company. 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!

Spear Reit is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership of Spear Reit

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Spear Reit insiders own about R277m worth of shares. That equates to 26% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About Spear Reit Insiders?

The recent insider purchases are 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 Spear Reit. Nice! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Spear Reit. To help with this, we've discovered 4 warning signs (2 shouldn't be ignored!) that you ought to be aware of before buying any shares in Spear Reit.

But note: Spear Reit 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.

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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.
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