How Many K.M. Sugar Mills Limited (NSE:KMSUGAR) Shares Did Insiders Buy, In The Last Year?

We often see insiders buying up shares in companies that perform well over the long term. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So before you buy or sell K.M. Sugar Mills Limited (NSE:KMSUGAR), you may well want to know whether insiders have been buying or selling.

What Is Insider Selling?

It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, rules govern insider transactions, and certain disclosures are required.

We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.

Check out our latest analysis for K.M. Sugar Mills

K.M. Sugar Mills Insider Transactions Over The Last Year

There wasn't any very large single transaction over the last year, but we can still observe some trading.

Happily, we note that in the last year insiders paid ₹4.1m for 715.05k shares. But they sold 33.77k shares for ₹399k. Overall, K.M. Sugar Mills insiders were net buyers during the last year. 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!

K.M. Sugar Mills is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Have K.M. Sugar Mills Insiders Traded Recently?

We saw insider selling worth ₹63k in the last three months. That's only a tiny bit more than the purchases, worth ₹22k. Ultimately the overall selling isn't enough to tell us much.

Insider Ownership of K.M. Sugar Mills

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. K.M. Sugar Mills insiders own about ₹606m worth of shares (which is 51% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At K.M. Sugar Mills Tell Us?

Insider selling has just outweighed insider buying in the last three months. But the difference is small, and thus, not concerning. On a brighter note, the transactions over the last year are encouraging. With high insider ownership and encouraging transactions, it seems like K.M. Sugar Mills insiders think the business has merit. 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. At Simply Wall St, we found 2 warning signs for K.M. Sugar Mills that deserve your attention before buying any shares.

Of course K.M. Sugar Mills 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, 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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