Rahul Gautam Buys Handful Of Shares In Sheela Foam

Potential Sheela Foam Limited (NSE:SFL) shareholders may wish to note that the Executive Chairman, Rahul Gautam, recently bought ₹20m worth of stock, paying ₹803 for each share. However, it only increased shareholding by a small percentage, and it wasn't a huge purchase by absolute value, either.

Check out 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. Of course they may have changed their mind. But this suggests they are optimistic. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the Sheela Foam insider decided to buy shares at close to current prices. Rahul Gautam was the only individual insider to buy during the last year.

Rahul Gautam bought 37.50k shares over the last 12 months at an average price of ₹801. 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!

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?

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. Sheela Foam insiders own 53% of the company, currently worth about ₹49b based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Sheela Foam Insider Transactions Indicate?

It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Sheela Foam. Looks promising! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Sheela Foam. When we did our research, we found 2 warning signs for Sheela Foam (1 is concerning!) that we believe deserve your full attention.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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 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.