Insider Buying: The Thangamayil Jewellery Limited (NSE:THANGAMAYL) Founder Just Bought 6.1% More Shares

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 ₹2.0m to buy stock, at ₹604 per share. Although the purchase is not a big one, increasing their shareholding by only 6.1%, it can be interpreted as a good sign.

Check out our latest analysis for Thangamayil Jewellery

Thangamayil Jewellery Insider Transactions Over The Last Year

The Joint MD & Whole-Time Director N. Kumar made the biggest insider purchase in the last 12 months. That single transaction was for ₹11m worth of shares at a price of ₹339 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of ₹598. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Thangamayil Jewellery insiders may have bought shares in the last year, but they didn't sell any. Their average price was about ₹396. It is certainly positive to see that insiders have invested their own money in the company. However, we do note that they were buying at significantly lower prices than today's share price. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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).

Insider Ownership of Thangamayil Jewellery

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Thangamayil Jewellery insiders own 45% of the company, currently worth about ₹3.7b based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Thangamayil Jewellery Tell Us?

It's certainly positive to see the recent insider purchases. 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. That's what I like to see! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example, Thangamayil Jewellery has 2 warning signs (and 1 which can't be ignored) we think you should know about.

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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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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