Stock Analysis

Don't Ignore The Insider Selling In Combined Motor Holdings

JSE:CMH
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Investors may wish to note that the Executive Director of Combined Motor Holdings Limited, Bruce William Barritt, recently netted R1.1m from selling stock, receiving an average price of R33.99. On the bright side, that's just a small sale and only reduced their holding by 3.7%.

See our latest analysis for Combined Motor Holdings

Combined Motor Holdings Insider Transactions Over The Last Year

Notably, that recent sale by Bruce William Barritt is the biggest insider sale of Combined Motor Holdings shares that we've seen in the last year. So what is clear is that an insider saw fit to sell at around the current price of R33.51. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
JSE:CMH Insider Trading Volume October 25th 2024

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Combined Motor Holdings insiders own 44% of the company, worth about R1.1b. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Combined Motor Holdings Insider Transactions Indicate?

An insider hasn't bought Combined Motor Holdings stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. 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. 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. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of Combined Motor Holdings.

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.