Urmila Bhuwalka Just Bought A Bunch Of Shares In JSW Steel Limited (NSE:JSWSTEEL)

By
Simply Wall St
Published
September 03, 2019
NSEI:JSWSTEEL

Whilst it may not be a huge deal, we thought it was good to see that Urmila Bhuwalka, who is a company insider, recently bought ₹850k worth of stock, for ₹213 per share. That might not be a big purchase but it only increased their holding by 1.4%, and could be interpreted as a good sign.

See our latest analysis for JSW Steel

JSW Steel Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by insider Parth Jindal for ₹20m worth of shares, at about ₹400 per share. That means that even when the share price was higher than ₹217 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

In the last twelve months insiders paid ₹21m for 55000 shares purchased. JSW Steel insiders may have bought shares in the last year, but they didn't sell any. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

NSEI:JSWSTEEL Recent Insider Trading, September 3rd 2019
NSEI:JSWSTEEL Recent Insider Trading, September 3rd 2019

Does JSW Steel Boast High 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 ₹8.5b 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 Do The JSW Steel Insider Transactions Indicate?

It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. Once you factor in the high insider ownership, it certainly seems like insiders are positive about JSW Steel. Nice! Of course, the future is what matters most. So if you are interested in JSW Steel, you should check out this free report on analyst forecasts for the company.

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.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.

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