As Butterfly Gandhimathi Appliances Limited's (NSE:BUTTERFLY) market cap increased , insiders who bought last year may be reflecting on buying more

By
Simply Wall St
Published
September 07, 2021
NSEI:BUTTERFLY
Source: Shutterstock

Insiders who bought Butterfly Gandhimathi Appliances Limited (NSE:BUTTERFLY) stock in the last 12 months were richly rewarded last week. The company's market value increased by as a result of the stock's 13% gain over the same period. As a result, the stock they originally bought for ₹430k is now worth ₹824k.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for Butterfly Gandhimathi Appliances

The Last 12 Months Of Insider Transactions At Butterfly Gandhimathi Appliances

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

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume
NSEI:BUTTERFLY Insider Trading Volume September 8th 2021

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.

Does Butterfly Gandhimathi Appliances Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 32% of Butterfly Gandhimathi Appliances shares, worth about ₹4.2b. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The Butterfly Gandhimathi Appliances Insider Transactions Indicate?

There haven't been any insider transactions in the last three months -- that doesn't mean much. On a brighter note, the transactions over the last year are encouraging. Judging from their transactions, and high insider ownership, Butterfly Gandhimathi Appliances insiders feel good about the company's future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Butterfly Gandhimathi Appliances. At Simply Wall St, we found 1 warning sign for Butterfly Gandhimathi Appliances that deserve your attention before buying any shares.

But note: Butterfly Gandhimathi Appliances 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, but not derivative transactions.

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