Have Insiders Been Buying Kapston Facilities Management Limited (NSE:KAPSTON) Shares?

We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So before you buy or sell Kapston Facilities Management Limited (NSE:KAPSTON), you may well want to know whether insiders have been buying or selling.

Do Insider Transactions Matter?

It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, rules govern insider transactions, and certain disclosures are required.

We don't think shareholders should simply follow insider transactions. But it is perfectly logical to keep tabs on what insiders are doing. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise'.

See our latest analysis for Kapston Facilities Management

Kapston Facilities Management Insider Transactions Over The Last Year

There wasn't any very large single transaction over the last year, but we can still observe some trading.

In the last twelve months insiders purchased 3.80k shares for ₹385k. On the other hand they divested 2.00k shares, for ₹234k. In total, Kapston Facilities Management insiders bought more than they sold over the last year. The average buy price was around ₹101. These transactions suggest that insiders have considered the current price of ₹101 attractive. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

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 of Kapston Facilities Management

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Kapston Facilities Management insiders own about ₹946m worth of shares (which is 92% 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.

What Might The Insider Transactions At Kapston Facilities Management Tell Us?

It doesn't really mean much that no insider has traded Kapston Facilities Management shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. It would be great to see more insider buying, but overall it seems like Kapston Facilities Management insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Kapston Facilities Management. To assist with this, we've discovered 3 warning signs that you should run your eye over to get a better picture of Kapston Facilities Management.

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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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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