Madhu Saboo Just Bought 3.5% More Shares In Mohit Industries Limited (NSE:MOHITIND)

Whilst it may not be a huge deal, we thought it was good to see that Madhu Saboo, who is a company insider, recently bought ₹115k worth of stock, for ₹7.66 per share. Although the purchase is not a big one, increasing their shareholding by only 3.5%, it can be interpreted as a good sign.

Check out our latest analysis for Mohit Industries

The Last 12 Months Of Insider Transactions At Mohit Industries

While no particular insider transaction stood out, we can still look at the overall trading.

Mohit Industries insiders may have bought shares in the last year, but they didn't sell any. They paid about ₹4.19 on average. It is certainly positive to see that insiders have invested their own money in the company. But we must note that the investments were made at well below today's share price of ₹7.70. 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!

Mohit Industries is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Insiders own 15% of Mohit Industries shares, worth about ₹16m, according to our data. However, it's possible that insiders might have an indirect interest through a more complex structure. We do generally prefer see higher levels of insider ownership.

So What Does This Data Suggest About Mohit Industries Insiders?

The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest Mohit Industries 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. To that end, you should learn about the 4 warning signs we've spotted with Mohit Industries (including 3 which are concerning).

Of course Mohit Industries may not be the best stock to buy. So you may wish to see this free collection of high quality 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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