One Sheela Foam Insider Raised Their Stake In The Previous Year

Viewing insider transactions for Sheela Foam Limited's (NSE:SFL ) over the last year, we see that insiders were net buyers. This means that a larger number of shares were purchased by insiders in relation to shares sold.

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.

See our latest analysis for Sheela Foam

The Last 12 Months Of Insider Transactions At Sheela Foam

Notably, that recent purchase by Rahul Gautam is the biggest insider purchase of Sheela Foam shares that we've seen in the last year. That implies that an insider found the current price of ₹838 per share to be enticing. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. Happily, the Sheela Foam insider decided to buy shares at close to current prices. The only individual insider to buy over the last year was Rahul Gautam.

Rahul Gautam purchased 37.50k shares over the year. The average price per share was ₹801. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

Sheela Foam is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Does Sheela Foam Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with 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. It's great to see that Sheela Foam insiders own 53% of the company, worth about ₹49b. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Sheela Foam Tell Us?

The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest Sheela Foam insiders are well aligned, and quite possibly think the share price is too low. Nice! While it's good to be aware of 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. Be aware that Sheela Foam is showing 2 warning signs in our investment analysis, and 1 of those can't be ignored...

Of course Sheela Foam 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 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.