Insider Buys Additional R53k In Combined Motor Holdings Stock

Whilst it may not be a huge deal, we thought it was good to see that the Combined Motor Holdings Limited (JSE:CMH) Executive Director, Bruce William Barritt, recently bought R53k worth of stock, for R28.00 per share. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.

Check out our latest analysis for Combined Motor Holdings

Combined Motor Holdings Insider Transactions Over The Last Year

Executive Director Bruce William Barritt previously made an even bigger purchase of R2.6m worth of shares at a price of R26.45 per share. So it's clear an insider wanted to buy, at around the current price, which is R28.00. 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 Combined Motor Holdings insider decided to buy shares at close to current prices. Bruce William Barritt was the only individual insider to buy shares in the last twelve months.

Bruce William Barritt bought a total of 101.88k shares over the year at an average price of R26.43. 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!

Combined Motor Holdings is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership Of Combined Motor Holdings

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Combined Motor Holdings insiders own about R918m worth of shares (which is 44% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About Combined Motor Holdings Insiders?

It's certainly positive to see the recent insider purchase. 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 Combined Motor Holdings. Looks promising! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we found 1 warning sign for Combined Motor Holdings that deserve your attention before buying any shares.

But note: Combined Motor Holdings 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. 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.