Insider Buys Additional R3.0m In Blue Label Telecoms Stock

Investors who take an interest in Blue Label Telecoms Limited (JSE:BLU) should definitely note that the Co-Founder, Mark Levy, recently paid R5.25 per share to buy R3.0m worth of the stock. However, it only increased shareholding by a small percentage, and it wasn't a huge purchase by absolute value, either.

See our latest analysis for Blue Label Telecoms

The Last 12 Months Of Insider Transactions At Blue Label Telecoms

In fact, the recent purchase by Co-Founder Mark Levy was not their only acquisition of Blue Label Telecoms shares this year. Earlier in the year, they paid R2.85 per share in a R3.8m purchase. We do like to see buying, but this purchase was made at well below the current price of R4.86. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Blue Label Telecoms insiders may have bought shares in the last year, but they didn't sell any. The average buy price was around R4.09. To my mind it is good that insiders have invested their own money in the company. But we must note that the investments were made at well below today's share price. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Does Blue Label Telecoms Boast High Insider Ownership?

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. We usually like to see fairly high levels of insider ownership. Insiders own 34% of Blue Label Telecoms shares, worth about R1.5b. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

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

The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Blue Label Telecoms. One for the watchlist, at least! 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. You'd be interested to know, that we found 1 warning sign for Blue Label Telecoms and we suggest you have a look.

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.