Insiders Rewarded With ₹129m Addition To Investment As Monarch Networth Capital Stock Hits ₹17b

Last week, Monarch Networth Capital Limited (NSE:MONARCH) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 11% last week, resulting in a ₹1.7b increase in the company's market worth, implying a 111% gain on their initial purchase. As a result, their original purchase of ₹116.3m worth of stock is now worth ₹245.0m.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Monarch Networth Capital

The Last 12 Months Of Insider Transactions At Monarch Networth Capital

The MD & Non-Independent Executive Director Vaibhav Shah made the biggest insider purchase in the last 12 months. That single transaction was for ₹68m worth of shares at a price of ₹228 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of ₹500. 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.

In the last twelve months Monarch Networth Capital insiders were buying shares, but not selling. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership Of Monarch Networth Capital

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Monarch Networth Capital insiders own 60% of the company, currently worth about ₹10b based on the recent share price. 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 Monarch Networth Capital Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Monarch Networth Capital shares in the last quarter. 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 Monarch Networth Capital insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Monarch Networth Capital. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Monarch Networth Capital.

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.