Don't Ignore The Insider Selling In MiX Telematics

We'd be surprised if MiX Telematics Limited (JSE:MIX) shareholders haven't noticed that an insider, Robin Frew, recently sold R7.0m worth of stock at R5.38 per share. On the bright side, that sale was only 7.4% of their holding, so we doubt it's very meaningful, on its own.

See our latest analysis for MiX Telematics

The Last 12 Months Of Insider Transactions At MiX Telematics

In fact, the recent sale by insider Robin Frew was not their only sale of MiX Telematics shares this year. Earlier in the year, they fetched R5.85 per share in a -R7.5m sale. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (R4.82). So it may not tell us anything about how insiders feel about the current share price.

In the last year MiX Telematics insiders didn't buy any company stock. 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!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Insider Ownership Of MiX Telematics

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. MiX Telematics insiders own about R348m worth of shares. That equates to 13% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At MiX Telematics Tell Us?

Insiders sold MiX Telematics shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. 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. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing MiX Telematics. To help with this, we've discovered 2 warning signs (1 is concerning!) that you ought to be aware of before buying any shares in MiX Telematics.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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 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.