Trade Alert: The CEO, MD & Director Of Madhav Marbles and Granites Limited (NSE:MADHAV), Madhav Doshi, Has Just Spent ₹402k Buying A Few More Shares

Even if it's not a huge purchase, we think it was good to see that Madhav Doshi, the CEO, MD & Director of Madhav Marbles and Granites Limited (NSE:MADHAV) recently shelled out ₹402k to buy stock, at ₹28.88 per share. Nevertheless, it only increased their shareholding by a minuscule percentage, and it wasn't a massive purchase by absolute value, either.

View our latest analysis for Madhav Marbles and Granites

Madhav Marbles and Granites Insider Transactions Over The Last Year

Notably, that recent purchase by Madhav Doshi is the biggest insider purchase of Madhav Marbles and Granites shares that we've seen in the last year. So it's clear an insider wanted to buy, even at a higher price than the current share price (being ₹28.20). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Madhav Doshi was the only individual insider to buy during the last year.

Madhav Doshi bought 112.98k shares over the last 12 months at an average price of ₹27.95. 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!

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

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Madhav Marbles and Granites insiders own 31% of the company, worth about ₹78m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Madhav Marbles and Granites Insiders?

It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest Madhav Marbles and Granites insiders are well aligned, and that they may think the share price is too low. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. For instance, we've identified 4 warning signs for Madhav Marbles and Granites (2 are significant) you should be aware of.

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, but not derivative transactions.

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