The Senior President cum Director of Siyaram Silk Mills Limited (NSE:SIYSIL), Ashok Kumar Jalan, Just Bought 3,319% More Shares

Even if it's not a huge purchase, we think it was good to see that Ashok Kumar Jalan, the Senior President cum Director of Siyaram Silk Mills Limited (NSE:SIYSIL) recently shelled out ₹2.7m to buy stock, at ₹138 per share. Even though that isn't a massive buy, it did increase their holding by 3,319%, which is arguably a good sign.

See our latest analysis for Siyaram Silk Mills

Siyaram Silk Mills Insider Transactions Over The Last Year

In fact, the recent purchase by Ashok Kumar Jalan was the biggest purchase of Siyaram Silk Mills shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at above the current price of ₹135. Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

While Siyaram Silk Mills 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 want to know exactly who sold, for how much, and when, simply click on the graph below!

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Does Siyaram Silk Mills 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. Siyaram Silk Mills insiders own about ₹3.0b worth of shares (which is 48% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Siyaram Silk Mills Insider Transactions Indicate?

It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest Siyaram Silk Mills insiders are well aligned, and quite possibly think the share price is too low. One for the watchlist, at least! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Siyaram Silk Mills. Case in point: We've spotted 3 warning signs for Siyaram Silk Mills you should be aware of.

But note: Siyaram Silk Mills 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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