Vinod Aggarwal of STL Global Limited (NSE:SGL) Just Spent ₹487k On Shares

Even if it's not a huge purchase, we think it was good to see that Vinod Aggarwal, a STL Global Limited (NSE:SGL) insider, recently shelled out ₹487k to buy stock, at ₹7.40 per share. Although the purchase is not a big one, increasing their shareholding by only 1.5%, it can be interpreted as a good sign.

See our latest analysis for STL Global

STL Global Insider Transactions Over The Last Year

insider Vinod Aggarwal previously made an even bigger purchase of ₹795k worth of shares at a price of ₹6.30 per share. Even though the purchase was made at a significantly lower price than the recent price (₹9.90), we still think insider buying is a positive. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

Vinod Aggarwal bought 192.02k shares over the last 12 months at an average price of ₹6.68. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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

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. STL Global insiders own about ₹153m worth of shares (which is 55% of the company). 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 Does This Data Suggest About STL Global Insiders?

It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest STL Global insiders are well aligned, and quite possibly think the share price is too low. That's what I like to see! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. At Simply Wall St, we've found that STL Global has 4 warning signs (2 shouldn't be ignored!) that deserve your attention before going any further with your analysis.

Of course STL Global 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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