Balasubbu Prasannan Is The General Manager of Marketing of Thangamayil Jewellery Limited (NSE:THANGAMAYL) And They Just Picked Up 3.7% More Shares

Whilst it may not be a huge deal, we thought it was good to see that the Thangamayil Jewellery Limited (NSE:THANGAMAYL) General Manager of Marketing, Balasubbu Prasannan, recently bought ₹599k worth of stock, for ₹617 per share. Although the purchase is not a big one, increasing their shareholding by only 3.7%, it can be interpreted as a good sign.

View our latest analysis for Thangamayil Jewellery

The Last 12 Months Of Insider Transactions At Thangamayil Jewellery

In the last twelve months, the biggest single purchase by an insider was when Joint MD & Whole-Time Director N. Kumar bought ₹11m worth of shares at a price of ₹339 per share. We do like to see buying, but this purchase was made at well below the current price of ₹619. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

While Thangamayil Jewellery insiders bought shares during the last year, they didn't sell. Their average price was about ₹393. We don't deny that it is nice to see insiders buying stock in the company. But we must note that the investments were made at well below today's share price. 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 Thangamayil Jewellery Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Thangamayil Jewellery insiders own 65% of the company, worth about ₹5.5b. 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 Thangamayil Jewellery Tell Us?

It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest Thangamayil Jewellery insiders are well aligned, and quite possibly think the share price is too low. 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. At Simply Wall St, we've found that Thangamayil Jewellery has 3 warning signs (1 shouldn't be ignored!) that deserve your attention before going any further with your analysis.

But note: Thangamayil Jewellery 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.

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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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