Have Insiders Been Buying Jullundur Motor Agency (Delhi) Limited (NSE:JMA) Shares This Year?

It is not uncommon to see companies perform well in the years after insiders buy shares. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So shareholders might well want to know whether insiders have been buying or selling shares in Jullundur Motor Agency (Delhi) Limited (NSE:JMA).

What Is Insider Selling?

Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock in the company. However, rules govern insider transactions, and certain disclosures are required.

Insider transactions are not the most important thing when it comes to long-term investing. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year'.

View our latest analysis for Jullundur Motor Agency (Delhi)

The Last 12 Months Of Insider Transactions At Jullundur Motor Agency (Delhi)

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

In the last twelve months Jullundur Motor Agency (Delhi) insiders were buying shares, but not selling. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, 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. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Does Jullundur Motor Agency (Delhi) Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Jullundur Motor Agency (Delhi) insiders own 65% of the company, currently worth about ₹684m based on the recent share price. 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 Do The Jullundur Motor Agency (Delhi) Insider Transactions Indicate?

The fact that there have been no Jullundur Motor Agency (Delhi) insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. It would be great to see more insider buying, but overall it seems like Jullundur Motor Agency (Delhi) insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Jullundur Motor Agency (Delhi). Case in point: We've spotted 3 warning signs for Jullundur Motor Agency (Delhi) you should be aware of.

Of course Jullundur Motor Agency (Delhi) may not be the best stock to buy. So you may wish to see this free collection of high quality 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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