Insider Buys Additional ₹8.9m In Bharat Wire Ropes Stock

Potential Bharat Wire Ropes Limited (NSE:BHARATWIRE) shareholders may wish to note that the MD & Executive Director, Murarilal Mittal, recently bought ₹8.9m worth of stock, paying ₹287 for each share. However, it only increased shareholding by a small percentage, and it wasn't a huge purchase by absolute value, either.

See our latest analysis for Bharat Wire Ropes

Bharat Wire Ropes Insider Transactions Over The Last Year

Notably, that recent purchase by Murarilal Mittal is the biggest insider purchase of Bharat Wire Ropes shares that we've seen in the last year. So it's clear an insider wanted to buy, even at a higher price than the current share price (being ₹288). 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. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. The only individual insider to buy over the last year was Murarilal Mittal.

Hemant Agrawal ditched 88.00k shares over the year. The average price per share was ₹220. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

I will like Bharat Wire Ropes better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Does Bharat Wire Ropes Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Bharat Wire Ropes insiders own about ₹4.4b worth of shares. That equates to 22% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About Bharat Wire Ropes Insiders?

The recent insider purchase is heartening. 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, Bharat Wire Ropes 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. You'd be interested to know, that we found 1 warning sign for Bharat Wire Ropes and we suggest you have a look.

But note: Bharat Wire Ropes 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.