Insiders Of S.J.S. Enterprises Are Up 149% On Their ₹718.2m Purchase

S.J.S. Enterprises Limited (NSE:SJS) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 12%, resulting in a ₹4.1b rise in the company's market capitalisation, translating to a gain of 149% on their initial investment. As a result, the stock they originally bought for ₹718.2m is now worth ₹1.79b.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for S.J.S. Enterprises

S.J.S. Enterprises Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Co-Founder Kannampadathil Joseph bought ₹450m worth of shares at a price of ₹500 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of ₹1,245. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Kannampadathil Joseph bought 1.44m shares over the last 12 months at an average price of ₹500. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

S.J.S. Enterprises is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Insider Ownership Of S.J.S. Enterprises

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that S.J.S. Enterprises insiders own 25% of the company, worth about ₹9.7b. 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 Does This Data Suggest About S.J.S. Enterprises Insiders?

The fact that there have been no S.J.S. Enterprises insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. Judging from their transactions, and high insider ownership, S.J.S. Enterprises insiders feel good about the company's future. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

But note: S.J.S. Enterprises 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 of direct interests only, but not derivative transactions or indirect interests.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.