As STL Global Limited (NSE:SGL) gains 11%, insiders who bought last year may be wishing they had bet higher

By
Simply Wall St
Published
August 27, 2021
NSEI:SGL
Source: Shutterstock

STL Global Limited (NSE:SGL) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 11%, resulting in a ₹36m rise in the company's market capitalisation. In other words, the original ₹487k purchase is now worth ₹925k.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for STL Global

The Last 12 Months Of Insider Transactions At STL Global

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. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
NSEI:SGL Insider Trading Volume August 28th 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.

Insider Ownership of STL Global

Many investors like to check how much of a company is owned by 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. STL Global insiders own about ₹207m worth of shares (which is 55% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The STL Global 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. It would be great to see more insider buying, but overall it seems like STL Global insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 4 warning signs for STL Global you should be aware of, and 2 of them are a bit concerning.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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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