ASX 200 stock Steadfast Group Ltd (ASX: SDF) has been on a wave of volatility in recent weeks.
Shares are down more than 13% in the past month after hitting highs of $6.48 at the beginning of September.
Despite this, the ASX 200 stock has seen substantial buying activity from key institutional players who have bought on the price weakness.
Among those increasing their stakes are AustralianSuper, Superannuation and Investments HoldCo, and the Commonwealth Bank of Australia (ASX: CBA).
Let's take a closer look at these insider transactions in detail.
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Insiders buy this ASX 200 stock
After the recent price slump in Steadfast shares, many institutional players were quick to jump in at the more attractive prices.
AustralianSuper, one of the country's largest superannuation funds, has increased its stake in Steadfast Group.
According to a recent filing, AustralianSuper now holds about 95.3 million ordinary shares, representing an 8.61% voting power, up from 7.51% previously.
Similarly, Superannuation and Investments HoldCo, along with its related bodies corporate, recently became a substantial holder in Steadfast.
Its total stake now stands at 57.08 million fully paid ordinary shares, equating to a 5.16% voting power in the ASX 200 stock.
Meanwhile, Commonwealth Bank of Australia has also joined the buying spree, amassing a 5.14% voting stake in the company.
This marks CBA's increased involvement in Steadfast, with a total of 56.9 million common shares.
These moves might indicate that institutional investors are positioning themselves to benefit from what they perceive as Steadfast's future growth. They wouldn't be buying if the view was the business will decrease.
What started the selloff anyway?
Steadfast is in the insurance brokerage sector. It recently garnered attention due to reports the company was funnelling kickbacks through its subsidiaries.
The ASX 200 stock was heavily sold in the days following the initial reports.
The company denied all allegations, requesting its shares be put on ice until it fully responded to the matter.
Despite the allegations, analysts remain bullish on the ASX 200 stock.
Macquarie, for example, has retained its outperform rating on Steadfast shares with a price target of $6.80.
Macquarie's note highlights that Steadfast's actual market share in commercial lines is only around 15% versus the 38% reported.
It also notes that Steadfast has only made two significant broker acquisitions since 2018, which, it says, means any potential regulatory action could be minimal.
The market looks to agree, driving the ASX 200 stock more than 5% into the green this past month.
Foolish takeout
The buying activity from significant insiders suggests they have confidence in the ASX 200 stock's business model and future prospects.
Steadfast shares are up nearly 1% in the past year.
