Sushil Shah Is The Founder & Executive Chairman of Metropolis Healthcare Limited (NSE:METROPOLIS) And Just Spent ₹100m On Shares

By
Simply Wall St
Published
February 24, 2022
NSEI:METROPOLIS
Source: Shutterstock

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.

Check out our latest analysis for Metropolis Healthcare

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!

insider-trading-volume
NSEI:METROPOLIS Insider Trading Volume February 24th 2022

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).

Insider Ownership

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.

Discounted cash flow calculation for every stock

Simply Wall St does a detailed discounted cash flow calculation every 6 hours for every stock on the market, so if you want to find the intrinsic value of any company just search here. It’s FREE.

Make Confident Investment Decisions

Simply Wall St's Editorial Team provides unbiased, factual reporting on global stocks using in-depth fundamental analysis.
Find out more about our editorial guidelines and team.