MD & Director of Ugar Sugar Works Picks Up 22% More Stock

Potential The Ugar Sugar Works Limited (NSE:UGARSUGAR) shareholders may wish to note that the MD & Director, Chandan Shirgaokar, recently bought ₹15m worth of stock, paying ₹70.52 for each share. That's a very decent purchase to our minds and it grew their holding by a solid 22%.

View our latest analysis for Ugar Sugar Works

The Last 12 Months Of Insider Transactions At Ugar Sugar Works

In fact, the recent purchase by Chandan Shirgaokar was the biggest purchase of Ugar Sugar Works shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at above the current price of ₹67.92. Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

In the last twelve months Ugar Sugar Works insiders were buying shares, but not selling. Their average price was about ₹57.30. To my mind it is good that insiders have invested their own money in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. The chart below shows insider transactions (by companies and individuals) over the last year. 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 undervalued small cap companies that insiders are buying.

Insider Ownership Of Ugar Sugar Works

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Insiders own 12% of Ugar Sugar Works shares, worth about ₹929m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Ugar Sugar Works Tell Us?

It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest Ugar Sugar Works insiders are well aligned, and quite possibly think the share price is too low. Nice! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Our analysis shows 3 warning signs for Ugar Sugar Works (1 can't be ignored!) and we strongly recommend you look at these before investing.

But note: Ugar Sugar Works 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.