This Insider Has Just Sold Shares In JSW Steel Limited (NSE:JSWSTEEL)

Simply Wall St
January 13, 2021

Investors may wish to note that an insider of JSW Steel Limited, Urmila Bhuwalka, recently netted ₹6.0m from selling stock, receiving an average price of ₹402. On the bright side, that's just a small sale and only reduced their holding by 5.8%.

See our latest analysis for JSW Steel

The Last 12 Months Of Insider Transactions At JSW Steel

In fact, the recent sale by insider Urmila Bhuwalka was not their only sale of JSW Steel shares this year. They previously made an even bigger sale of -₹6.8m worth of shares at a price of ₹339 per share. That means that an insider was selling shares at slightly below the current price (₹403). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. This single sale was just 6.8% of Urmila Bhuwalka's stake.

In the last twelve months insiders purchased 48.74k shares for ₹8.4m. On the other hand they divested 73.50k shares, for ₹25m. All up, insiders sold more shares in JSW Steel than they bought, over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

NSEI:JSWSTEEL Insider Trading Volume January 14th 2021

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

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. JSW Steel insiders own 1.6% of the company, currently worth about ₹16b based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About JSW Steel Insiders?

An insider sold JSW Steel shares recently, but they didn't buy any. Zooming out, the longer term picture doesn't give us much comfort. It is good to see high insider ownership, but the insider selling leaves us cautious. 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. Be aware that JSW Steel is showing 6 warning signs in our investment analysis, and 1 of those is a bit concerning...

Of course JSW Steel 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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