Bullish Mangalam Cement Insiders Rewarded As Their Investment Rises To ₹136.8m

Last week, Mangalam Cement Limited (NSE:MANGLMCEM) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 14% last week, resulting in a ₹2.9b increase in the company's market worth, implying a 31% gain on their initial purchase. As a result, their original purchase of ₹104.8m worth of stock is now worth ₹136.8m.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for Mangalam Cement

Mangalam Cement Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Chairman Anshuman Jalan for ₹98m worth of shares, at about ₹699 per share. We do like to see buying, but this purchase was made at well below the current price of ₹889. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

Over the last year, we can see that insiders have bought 153.81k shares worth ₹105m. On the other hand they divested 143.75k shares, for ₹100m. In the last twelve months there was more buying than selling by Mangalam Cement insiders. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership Of Mangalam Cement

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Mangalam Cement insiders own about ₹1.8b worth of shares. That equates to 7.6% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Mangalam Cement Insiders?

It doesn't really mean much that no insider has traded Mangalam Cement shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. Judging from their transactions, and high insider ownership, Mangalam Cement insiders feel good about the company's future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Mangalam Cement. You'd be interested to know, that we found 1 warning sign for Mangalam Cement and we suggest you have a look.

But note: Mangalam Cement 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.