Trade Alert: The Executive Chairman Of Steel City Securities Limited (NSE:STEELCITY), Kamireddy Satyanarayana, Has Just Spent ₹1.0m Buying 32% More Shares

Even if it's not a huge purchase, we think it was good to see that Kamireddy Satyanarayana, the Executive Chairman of Steel City Securities Limited (NSE:STEELCITY) recently shelled out ₹1.0m to buy stock, at ₹31.99 per share. That purchase might not be huge but it did increase their holding by 32%.

See our latest analysis for Steel City Securities

The Last 12 Months Of Insider Transactions At Steel City Securities

Notably, that recent purchase by Kamireddy Satyanarayana is the biggest insider purchase of Steel City Securities shares that we've seen in the last year. That means that an insider was happy to buy shares at around the current price of ₹35.90. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. Happily, the Steel City Securities insiders decided to buy shares at close to current prices.

In the last twelve months Steel City Securities insiders were buying shares, but not selling. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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.

Does Steel City Securities Boast High 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. A high insider ownership often makes company leadership more mindful of shareholder interests. Steel City Securities insiders own 44% of the company, currently worth about ₹238m 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 Steel City Securities Insider Transactions Indicate?

It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Steel City Securities. One for the watchlist, at least! 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. To help with this, we've discovered 3 warning signs (2 are potentially serious!) that you ought to be aware of before buying any shares in Steel City Securities.

But note: Steel City Securities 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, 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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