An Insider At Vodacom Group Lowered Their Holding Recently

Insiders were net sellers of Vodacom Group Limited's (JSE:VOD ) stock during the past year. That is, insiders sold more stock than they bought.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

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The Last 12 Months Of Insider Transactions At Vodacom Group

Over the last year, we can see that the biggest insider sale was by the CEO & Executive Director, Mohamed Shameel Joosub, for R20m worth of shares, at about R121 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of R136. 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. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 9.3% of Mohamed Shameel Joosub's stake. The only individual insider seller over the last year was Mohamed Shameel Joosub.

Mohamed Shameel Joosub sold a total of 232.58k shares over the year at an average price of R125. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

Check out our latest analysis for Vodacom Group

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Does Vodacom Group 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. Vodacom Group insiders own about R211m worth of shares. That equates to 0.08% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Vodacom Group Tell Us?

The fact that there have been no Vodacom Group insider transactions recently certainly doesn't bother us. It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the Vodacom Group insiders selling. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Vodacom Group. Every company has risks, and we've spotted 1 warning sign for Vodacom Group you should know about.

But note: Vodacom Group 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.