Bullish Shivalik Bimetal Controls Insiders Rewarded As Their Investment Rises To ₹104.5m
Shivalik Bimetal Controls Limited (NSE:SBCL) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 12% resulting in a ₹3.8b addition to the company’s market value. As a result, their original purchase of ₹67.8m worth of stock is now worth ₹104.5m.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
The Last 12 Months Of Insider Transactions At Shivalik Bimetal Controls
The Whole Time Director Sumer Ghumman made the biggest insider purchase in the last 12 months. That single transaction was for ₹34m worth of shares at a price of ₹394 each. We do like to see buying, but this purchase was made at well below the current price of ₹602. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
While Shivalik Bimetal Controls 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. By clicking on the graph below, you can see the precise details of each insider transaction!
View our latest analysis for Shivalik Bimetal Controls
Shivalik Bimetal Controls is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Insiders At Shivalik Bimetal Controls Have Bought Stock Recently
It's good to see that Shivalik Bimetal Controls insiders have made notable investments in the company's shares. In total, insiders bought ₹68m worth of shares in that time, and we didn't record any sales whatsoever. That shows some optimism about the company's future.
Does Shivalik Bimetal Controls Boast High 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. I reckon it's a good sign if insiders own a significant number of shares in the company. Shivalik Bimetal Controls insiders own about ₹7.9b worth of shares. That equates to 23% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At Shivalik Bimetal Controls Tell Us?
It is good to see recent purchasing. And the longer term insider transactions also give us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Shivalik Bimetal Controls. Nice! 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. In terms of investment risks, we've identified 2 warning signs with Shivalik Bimetal Controls and understanding these should be part of your investment process.
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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