Investors who take an interest in SIL Investments Limited (NSE:SILINV) should definitely note that the Non-Executive Chairman, Chandra Nopany, recently paid ₹308 per share to buy ₹11m worth of the stock. That certainly has us anticipating the best, especially since they thusly increased their own holding by 348%, potentially signalling some real optimism.
SIL Investments Insider Transactions Over The Last Year
In fact, the recent purchase by Chandra Nopany was the biggest purchase of SIL Investments shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of ₹334 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for SIL Investments share holders is that an insider was buying at near the current price. The only individual insider to buy over the last year was Chandra Nopany.
Chandra Nopany bought a total of 44.77k shares over the year at an average price of ₹307. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, 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 SIL Investments
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. From looking at our data, insiders own ₹96m worth of SIL Investments stock, about 2.7% of the company. But they may have an indirect interest through a corporate structure that we haven't picked up on. We consider this fairly low insider ownership.
So What Does This Data Suggest About SIL Investments 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 SIL Investments insiders are well aligned, and that they may think the share price is too low. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To help with this, we've discovered 4 warning signs (1 is significant!) that you ought to be aware of before buying any shares in SIL Investments.
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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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.