Don't Ignore The Insider Selling In Super Group

We'd be surprised if Super Group Limited (JSE:SPG) shareholders haven't noticed that the Group CEO & Executive Director, Peter Mountford, recently sold R3.2m worth of stock at R24.25 per share. The eyebrow raising move amounted to a reduction of 22% in their holding.

Check out our latest analysis for Super Group

The Last 12 Months Of Insider Transactions At Super Group

Notably, that recent sale by Peter Mountford is the biggest insider sale of Super Group shares that we've seen in the last year. So it's clear an insider wanted to take some cash off the table, even below the current price of R24.88. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was only 22% of Peter Mountford's holding.

In the last year Super Group insiders didn't buy any company stock. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

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Insider Ownership Of Super Group

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. From what we can see in our data, insiders own only about R12m worth of Super Group shares. We might be missing something but that seems like very low insider ownership.

So What Do The Super Group Insider Transactions Indicate?

Insiders sold stock recently, but they haven't been buying. Looking to the last twelve months, our data doesn't show any insider buying. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We'd practice some caution before buying! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Super Group. Case in point: We've spotted 4 warning signs for Super Group you should be aware of, and 1 of these is a bit unpleasant.

Of course Super Group 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.

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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.