Insider Buying: The Sakar Healthcare Limited (NSE:SAKAR) Chairman & MD Just Bought 7.1% More Shares

By
Simply Wall St
Published
March 02, 2021
NSEI:SAKAR

Sakar Healthcare Limited (NSE:SAKAR) shareholders (or potential shareholders) will be happy to see that the Chairman & MD, Sanjay Shah, recently bought a whopping ₹79m worth of stock, at a price of ₹120. While that only increased their holding size by 7.1%, it is still a big swing by our standards.

See our latest analysis for Sakar Healthcare

The Last 12 Months Of Insider Transactions At Sakar Healthcare

In fact, the recent purchase by Sanjay Shah was the biggest purchase of Sakar Healthcare shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, even at a higher price than the current share price (being ₹93.65). Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Sanjay Shah was the only individual insider to buy shares in the last twelve months.

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:SAKAR Insider Trading Volume March 3rd 2021

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

Does Sakar Healthcare Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Sakar Healthcare insiders own about ₹1.1b worth of shares (which is 79% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About Sakar Healthcare Insiders?

The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Sakar Healthcare. Looks promising! 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. When we did our research, we found 3 warning signs for Sakar Healthcare (1 makes us a bit uncomfortable!) that we believe deserve your full attention.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.

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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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