OUTsurance Group Insiders Placed Bullish Bets Worth R25.5m

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In the last year, multiple insiders have substantially increased their holdings of OUTsurance Group Limited (JSE:OUT) stock, indicating that insiders’ optimism about the company’s prospects has increased.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for OUTsurance Group

The Last 12 Months Of Insider Transactions At OUTsurance Group

Over the last year, we can see that the biggest insider purchase was by CEO & Executive Director Marthinus Visser for R15m worth of shares, at about R39.66 per share. So it’s clear an insider wanted to buy, at around the current price, which is R41.43. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company’s future. While we always like to see insider buying, it’s less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for OUTsurance Group share holders is that insiders were buying at near the current price.

While OUTsurance Group insiders bought shares during the last year, they didn’t sell. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

insider-trading-volume

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).

OUTsurance Group Insiders Bought Stock Recently

Over the last three months, we’ve seen significant insider buying at OUTsurance Group. Not only was there no selling that we can see, but they collectively bought R25m worth of shares. This could be interpreted as suggesting a positive outlook.

Insider Ownership Of OUTsurance Group

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. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 0.4% of OUTsurance Group shares, worth about R261m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About OUTsurance Group Insiders?

It’s certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest OUTsurance Group insiders are well aligned, and quite possibly think the share price is too low. That’s what I like to see! In addition to knowing about insider transactions going on, it’s beneficial to identify the risks facing OUTsurance Group. Every company has risks, and we’ve spotted 1 warning sign for OUTsurance Group you should know about.

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.