Have Insiders Sold Vodacom Group Shares Recently?

We wouldn't blame Vodacom Group Limited (JSE:VOD) shareholders if they were a little worried about the fact that Mohamed Shameel Joosub, the CEO & Executive Director recently netted about R20m selling shares at an average price of R121. However, that sale only accounted for 9.3% of their holding, so arguably it doesn't say much about their conviction.

View our latest analysis for Vodacom Group

Vodacom Group Insider Transactions Over The Last Year

Notably, that recent sale by Mohamed Shameel Joosub is the biggest insider sale of Vodacom Group shares that we've seen in the last year. So we know that an insider sold shares at around the present share price of R119. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

Mohamed Shameel Joosub sold a total of 183.42k shares over the year at an average price of R119. 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!

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

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. It appears that Vodacom Group insiders own 0.09% of the company, worth about R213m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The Vodacom Group Insider Transactions Indicate?

An insider sold stock recently, but they haven't been buying. And there weren't any purchases to give us comfort, over the last year. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 3 warning signs for Vodacom Group you should know about.

Of course Vodacom Group may not be the best stock to buy. So you may wish to see this free collection of high quality 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.