Even though The Supreme Industries Limited's (NSE:SUPREMEIND) stock is down 9.8% this week, insiders who bought lately made a ₹100k profit

By
Simply Wall St
Published
January 26, 2022
NSEI:SUPREMEIND
Source: Shutterstock

Insiders who purchased The Supreme Industries Limited (NSE:SUPREMEIND) shares in the past 12 months are unlikely to be deeply impacted by the stock's 9.8% decline over the past week. Even after accounting for the recent loss, the ₹2.5m worth of stock purchased by them is now worth ₹2.6m or in other words, their investment continues to give good returns.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for Supreme Industries

The Last 12 Months Of Insider Transactions At Supreme Industries

There wasn't any very large single transaction over the last year, but we can still observe some trading.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume
NSEI:SUPREMEIND Insider Trading Volume January 26th 2022

Supreme Industries is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Does Supreme Industries Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Supreme Industries insiders own 2.4% of the company, worth about ₹6.2b. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About Supreme Industries Insiders?

There haven't been any insider transactions in the last three months -- that doesn't mean much. However, our analysis of transactions over the last year is heartening. With high insider ownership and encouraging transactions, it seems like Supreme Industries insiders think the business has merit. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 1 warning sign for Supreme Industries you should know about.

But note: Supreme Industries 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, 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.