Despite S Chand and Company Limited's recent decline, insiders have made a around ₹798k profit after buying earlier this year.

By
Simply Wall St
Published
November 18, 2021
NSEI:SCHAND
Source: Shutterstock

Insiders who purchased S Chand and Company Limited (NSE:SCHAND) shares in the past 12 months are unlikely to be deeply impacted by the stock's 12% decline over the past week. Even after accounting for the recent loss, the ₹1.3m worth of stock purchased by them is now worth ₹2.1m or in other words, their investment continues to give good returns.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for S Chand

The Last 12 Months Of Insider Transactions At S Chand

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

While S Chand insiders bought shares during the last year, they didn't sell. 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!

insider-trading-volume
NSEI:SCHAND Insider Trading Volume November 19th 2021

S Chand is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Does S Chand Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. S Chand insiders own about ₹2.1b worth of shares (which is 52% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At S Chand Tell Us?

The fact that there have been no S Chand insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. It would be great to see more insider buying, but overall it seems like S Chand insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. You'd be interested to know, that we found 1 warning sign for S Chand and we suggest you have a look.

But note: S Chand 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.