Blue Label Telecoms Insider Confidence Rewarded, Stock Hits R8.9b Market Cap

Insiders who bought Blue Label Telecoms Limited (JSE:BLU) stock in the last 12 months were richly rewarded last week. The company's market value increased by R1.3b as a result of the stock's 16% gain over the same period. As a result, the stock they originally bought for R7.68m is now worth R14.5m.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

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Blue Label Telecoms Insider Transactions Over The Last Year

The Co-Founder Mark Levy made the biggest insider purchase in the last 12 months. That single transaction was for R3.0m worth of shares at a price of R5.25 each. We do like to see buying, but this purchase was made at well below the current price of R9.90. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

Blue Label Telecoms insiders may have bought shares in the last year, but they didn't sell any. 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!

See our latest analysis for Blue Label Telecoms

Blue Label Telecoms is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Does Blue Label Telecoms Boast High 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. Blue Label Telecoms insiders own about R1.8b worth of shares (which is 21% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Blue Label Telecoms Tell Us?

It doesn't really mean much that no insider has traded Blue Label Telecoms shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. It would be great to see more insider buying, but overall it seems like Blue Label Telecoms insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 1 warning sign with Blue Label Telecoms and understanding this should be part of your investment process.

But note: Blue Label Telecoms 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 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.