Byke Hospitality Insider Buyers Pleased With ₹85m Return On Investment

Insiders who bought The Byke Hospitality Limited (NSE:BYKE) stock lover the last 12 months are probably not as affected by last week’s 13% loss. After accounting for the recent loss, the ₹148.5m worth of shares they purchased is now worth ₹233.8m, suggesting a good return on their investment.

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 Byke Hospitality

Byke Hospitality Insider Transactions Over The Last Year

The Chairman Anil Patodia made the biggest insider purchase in the last 12 months. That single transaction was for ₹45m worth of shares at a price of ₹45.00 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of ₹70.86. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

While Byke Hospitality insiders bought shares during the last year, they didn't sell. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership Of Byke Hospitality

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. A high insider ownership often makes company leadership more mindful of shareholder interests. Byke Hospitality insiders own about ₹1.1b worth of shares. That equates to 31% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Byke Hospitality Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Byke Hospitality shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Judging from their transactions, and high insider ownership, Byke Hospitality insiders feel good about the company's future. 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. For instance, we've identified 2 warning signs for Byke Hospitality (1 is a bit concerning) you should be aware of.

Of course Byke Hospitality 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.