Hubtown Up 12%, Insider Buyers Are Up 441%

Hubtown Limited (NSE:HUBTOWN) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 12% resulting in a ₹4.1b addition to the company’s market value. In other words, the original ₹205.2m purchase is now worth ₹1.11b.

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.

View our latest analysis for Hubtown

The Last 12 Months Of Insider Transactions At Hubtown

Over the last year, we can see that the biggest insider purchase was by MD & Executive Director Vyomesh Shah for ₹205m worth of shares, at about ₹57.00 per share. We do like to see buying, but this purchase was made at well below the current price of ₹308. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. 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 Hubtown

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Hubtown insiders own 32% of the company, currently worth about ₹13b based on the recent share price. 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 Hubtown Tell Us?

There haven't been any insider transactions in the last three months -- that doesn't mean much. But insiders have shown more of an appetite for the stock, over the last year. Judging from their transactions, and high insider ownership, Hubtown insiders feel good about the company's 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. While conducting our analysis, we found that Hubtown has 2 warning signs and it would be unwise to ignore these.

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 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.