Insider Buying: The SMS Lifesciences India Limited (NSE:SMSLIFE) MD & Executive Director Just Bought 19% More Shares

SMS Lifesciences India Limited (NSE:SMSLIFE) shareholders (or potential shareholders) will be happy to see that the MD & Executive Director, Talluri Veera Venkata Murthy, recently bought a whopping ₹51m worth of stock, at a price of ₹605. Aside from being a solid chunk in its own right, the deft move also saw their holding increase by some 19%.

Check out our latest analysis for SMS Lifesciences India

SMS Lifesciences India Insider Transactions Over The Last Year

In fact, the recent purchase by Talluri Veera Venkata Murthy was the biggest purchase of SMS Lifesciences India 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 ₹585). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. To us, it's very important to consider the price insiders pay for shares is very important. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Talluri Veera Venkata Murthy 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!

SMS Lifesciences India 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.

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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. SMS Lifesciences India insiders own about ₹1.1b worth of shares (which is 65% 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.

So What Does This Data Suggest About SMS Lifesciences India Insiders?

The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about SMS Lifesciences India. One for the watchlist, at least! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. To help with this, we've discovered 3 warning signs (1 is a bit unpleasant!) that you ought to be aware of before buying any shares in SMS Lifesciences India.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.

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