Are Insiders Buying Mangalore Chemicals & Fertilizers Limited (NSE:MANGCHEFER) Stock?

It is not uncommon to see companies perform well in the years after insiders buy shares. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So before you buy or sell Mangalore Chemicals & Fertilizers Limited (NSE:MANGCHEFER), you may well want to know whether insiders have been buying or selling.

What Is Insider Buying?

It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, rules govern insider transactions, and certain disclosures are required.

Insider transactions are not the most important thing when it comes to long-term investing. But equally, we would consider it foolish to ignore insider transactions altogether. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise'.

View our latest analysis for Mangalore Chemicals & Fertilizers

Mangalore Chemicals & Fertilizers Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Independent Chairman Arun Duggal for ₹6.8m worth of shares, at about ₹34.99 per share. So it's clear an insider wanted to buy, at around the current price, which is ₹35.05. That means they have been optimistic about the company in the past, though they may have changed their mind. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. Happily, the Mangalore Chemicals & Fertilizers insiders decided to buy shares at close to current prices.

While Mangalore Chemicals & Fertilizers insiders bought shares during the last year, they didn't sell. 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!

Mangalore Chemicals & Fertilizers is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Does Mangalore Chemicals & Fertilizers 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. Our data suggests Mangalore Chemicals & Fertilizers insiders own 1.4% of the company, worth about ₹57m. We prefer to see high levels of insider ownership.

So What Does This Data Suggest About Mangalore Chemicals & Fertilizers Insiders?

There haven't been any insider transactions in the last three months -- that doesn't mean much. On a brighter note, the transactions over the last year are encouraging. Insiders do have a stake in Mangalore Chemicals & Fertilizers and their transactions don't cause us concern. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Mangalore Chemicals & Fertilizers. Every company has risks, and we've spotted 3 warning signs for Mangalore Chemicals & Fertilizers (of which 1 doesn't sit too well with us!) you should know about.

But note: Mangalore Chemicals & Fertilizers 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, but not derivative transactions.

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This article by Simply Wall St is general in nature. 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.
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