Shivalic Power Control Slides As Insider Purchases Lose Another ₹14m

Insiders who acquired ₹23.6m worth of Shivalic Power Control Limited's (NSE:SPCL) stock at an average price of ₹203 in the past 12 months may be dismayed by the recent 12% price decline. This is not good as insiders invest based on expectations that their money will appreciate over time. However, as a result of recent losses, their original investment is now worth only ₹9.74m.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

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Shivalic Power Control Insider Transactions Over The Last Year

The Founder Amit Jindal made the biggest insider purchase in the last 12 months. That single transaction was for ₹8.7m worth of shares at a price of ₹241 each. That means that an insider was happy to buy shares at above the current price of ₹83.65. It's very possible they regret the purchase, but it's more likely they are bullish about the company. 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.

In the last twelve months Shivalic Power Control insiders were buying shares, but not selling. Their average price was about ₹203. These transactions suggest that insiders have considered the current price attractive. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Check out our latest analysis for Shivalic Power Control

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Does Shivalic Power Control Boast High 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. We usually like to see fairly high levels of insider ownership. Shivalic Power Control insiders own 71% of the company, currently worth about ₹1.4b based on the recent share price. 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 Shivalic Power Control Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Shivalic Power Control shares in the last quarter. However, our analysis of transactions over the last year is heartening. With high insider ownership and encouraging transactions, it seems like Shivalic Power Control insiders think the business has merit. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Shivalic Power Control. Every company has risks, and we've spotted 1 warning sign for Shivalic Power Control you should know about.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.

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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.