V. M. Karthikeyan Is The Senior Vice President of Marketing of Butterfly Gandhimathi Appliances Limited (NSE:BUTTERFLY) And They Just Picked Up 1.2% More Shares

Even if it's not a huge purchase, we think it was good to see that V. M. Karthikeyan, the Senior Vice President of Marketing of Butterfly Gandhimathi Appliances Limited (NSE:BUTTERFLY) recently shelled out ₹430k to buy stock, at ₹430 per share. Although the purchase is not a big one, increasing their shareholding by only 1.2%, it can be interpreted as a good sign.

View our latest analysis for Butterfly Gandhimathi Appliances

The Last 12 Months Of Insider Transactions At Butterfly Gandhimathi Appliances

In fact, the recent purchase by Senior Vice President of Marketing V. M. Karthikeyan was not their only trade of Butterfly Gandhimathi Appliances shares this year. Earlier in the year, they sold shares at a price of₹200 per share in a -₹3.6m transaction. So it's clear an insider wanted to take some cash off the table, even below the current price of ₹471. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. This single sale was just 17% of V. M. Karthikeyan's stake.

V. M. Karthikeyan ditched 28.12k shares over the year. The average price per share was ₹197. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Insider Ownership of Butterfly Gandhimathi Appliances

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. It appears that Butterfly Gandhimathi Appliances insiders own 31% of the company, worth about ₹2.6b. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About Butterfly Gandhimathi Appliances Insiders?

It is good to see the recent insider purchase. On the other hand the transaction history, over the last year, isn't so positive. Overall, we'd prefer see a more sustained buying from directors, but with a significant insider holding and more recent purchases, Butterfly Gandhimathi Appliances insiders are reasonably well aligned, and optimistic for the future. 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. To that end, you should learn about the 4 warning signs we've spotted with Butterfly Gandhimathi Appliances (including 1 which is concerning).

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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