Even if it’s not a huge purchase, we think it was good to see that Balusamy Darmini, the Founder of Thangamayil Jewellery Limited (NSE:THANGAMAYL) recently shelled out ₹3.3m to buy stock, at ₹282 per share. That might not be a big purchase but it only increased their holding by 0.4%, and could be interpreted as a good sign.
The Last 12 Months Of Insider Transactions At Thangamayil Jewellery
Notably, that recent purchase by Founder Balusamy Darmini was not the only time they bought Thangamayil Jewellery shares this year. They previously made an even bigger purchase of ₹3.9m worth of shares at a price of ₹317 per share. So it’s clear an insider wanted to buy, even at a higher price than the current share price (being ₹299). It’s very possible they regret the purchase, but it’s more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
Over the last year, we can see that insiders have bought 101k shares worth ₹31m. While Thangamayil Jewellery insiders bought shares last year, they didn’t sell. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It’s great to see that Thangamayil Jewellery insiders own 63% of the company, worth about ₹2.4b. 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. We also take confidence from the longer term picture of insider transactions. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Thangamayil Jewellery. One for the watchlist, at least! Along with insider transactions, I recommend checking if Thangamayil Jewellery is growing revenue. This free chart of historic revenue and earnings should make that easy.
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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