Stock Analysis

Tamilnad Mercantile Bank Limited's (NSE:TMB) recent ₹4.5b market cap decline means a loss of ₹120k for insiders who bought this year

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The recent 6.3% drop in Tamilnad Mercantile Bank Limited's (NSE:TMB) stock could come as a blow to insiders who purchased ₹2.0m worth of stock at an average buy price of ₹453 over the past 12 months. Insiders invest with the hopes of seeing their money grow in value over time. However, as a result of recent losses, their initial investment is now only worth ₹1.8m, which is not what they expected.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for Tamilnad Mercantile Bank

The Last 12 Months Of Insider Transactions At Tamilnad Mercantile Bank

While there weren't any large insider transactions in the last twelve months, it's still worth looking at the trading.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

NSEI:TMB Insider Trading Volume March 19th 2023

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Insider Ownership

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. Tamilnad Mercantile Bank insiders own about ₹20b worth of shares (which is 29% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Tamilnad Mercantile Bank Tell Us?

It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Tamilnad Mercantile Bank. That's what I like to see! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Tamilnad Mercantile Bank. You'd be interested to know, that we found 1 warning sign for Tamilnad Mercantile Bank and we suggest you have a look.

Of course Tamilnad Mercantile Bank may not be the best stock to buy. So you may wish to see this free collection of high quality 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, but not derivative transactions.

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