Group CEO & Executive Director Sipho Maseko Just Sold A Bunch Of Shares In Telkom SA SOC Limited (JSE:TKG)

Anyone interested in Telkom SA SOC Limited (JSE:TKG) should probably be aware that the Group CEO & Executive Director, Sipho Maseko, recently divested R6.3m worth of shares in the company, at an average price of R32.71 each. In particular, we note that the sale equated to a 100% reduction in their position size, which doesn't exactly instill confidence.

Check out our latest analysis for Telkom SA SOC

The Last 12 Months Of Insider Transactions At Telkom SA SOC

In fact, the recent sale by Sipho Maseko was the biggest sale of Telkom SA SOC shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was slightly below the current price of R33.72, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower 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. It is worth noting that this sale was 100% of Sipho Maseko's holding.

The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

I will like Telkom SA SOC better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Does Telkom SA SOC Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company 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. Our information indicates that Telkom SA SOC insiders own about R2.7m worth of shares. This level of insider ownership is notably low, and not very encouraging.

What Might The Insider Transactions At Telkom SA SOC Tell Us?

An insider hasn't bought Telkom SA SOC stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. When you combine this with the relatively low insider ownership, we are very cautious about the stock. So we'd only buy after very careful consideration. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. To assist with this, we've discovered 4 warning signs that you should run your eye over to get a better picture of Telkom SA SOC.

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, but not derivative transactions.

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This article by Simply Wall St is general in nature. 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.
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