Insiders Of Byke Hospitality Reap Rewards After Their Investment Jumps Another ₹55m

Insiders who bought The Byke Hospitality Limited (NSE:BYKE) stock in the last 12 months were richly rewarded last week. The company's market value increased by ₹570m as a result of the stock's 16% gain over the same period. In other words, the original ₹58.5m purchase is now worth ₹113.6m.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for Byke Hospitality

The Last 12 Months Of Insider Transactions At Byke Hospitality

In the last twelve months, the biggest single purchase by an insider was when insider Aayush Patodia bought ₹22m worth of shares at a price of ₹45.00 per share. Even though the purchase was made at a significantly lower price than the recent price (₹87.41), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

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. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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

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. Insiders own 24% of Byke Hospitality shares, worth about ₹988m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Byke Hospitality Tell Us?

The fact that there have been no Byke Hospitality insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. Judging from their transactions, and high insider ownership, Byke Hospitality insiders feel good about the company's future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Byke Hospitality. For example - Byke Hospitality has 2 warning signs we think you should be aware of.

But note: Byke Hospitality may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com