Those following along with Metropolis Healthcare Limited (NSE:METROPOLIS) will no doubt be intrigued by the recent purchase of shares by Sushil Shah, Founder & Executive Chairman of the company, who spent a stonking ₹100m on stock at an average price of ₹2,000. While that only increased their holding size by 0.5%, it is still a big swing by our standards.
The Last 12 Months Of Insider Transactions At Metropolis Healthcare
In fact, the recent purchase by Founder & Executive Chairman Sushil Shah was not their only trade of Metropolis Healthcare shares this year. They previously made a sale of -₹1.3b worth of shares at a price of ₹3,132 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (₹2,087). So it may not shed much light on insider confidence at current levels.
Over the last year we saw more insider selling of Metropolis Healthcare shares, than buying. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Metropolis Healthcare insiders own 22% of the company, worth about ₹24b. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
What Might The Insider Transactions At Metropolis Healthcare Tell Us?
It's certainly positive to see the recent insider purchase. However, the longer term transactions are not so encouraging. Overall, we'd prefer see a more sustained buying from directors, but with a significant insider holding and more recent purchases, Metropolis Healthcare insiders are reasonably well aligned, and optimistic for the future. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Case in point: We've spotted 2 warning signs for Metropolis Healthcare you should be aware of.
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, 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.