As MRO-TEK Realty Limited (NSE:MRO-TEK) gains 66%, insiders who bought last year may be wishing they had bet higher

By
Simply Wall St
Published
August 19, 2021
NSEI:MRO-TEK
Source: Shutterstock

MRO-TEK Realty Limited (NSE:MRO-TEK) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 66% resulting in a ₹417m addition to the company’s market value. In other words, the original ₹753k purchase is now worth ₹1.3m.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for MRO-TEK Realty

The Last 12 Months Of Insider Transactions At MRO-TEK Realty

While there weren't any large insider transactions in the last twelve months, it's still worth looking at the trading.

Aniruddha Mehta bought 24.44k shares over the last 12 months at an average price of ₹30.81. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
NSEI:MRO-TEK Insider Trading Volume August 20th 2021

MRO-TEK Realty is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Does MRO-TEK Realty Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that MRO-TEK Realty insiders own 43% of the company, worth about ₹439m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At MRO-TEK Realty Tell Us?

There haven't been any insider transactions in the last three months -- that doesn't mean much. However, our analysis of transactions over the last year is heartening. With high insider ownership and encouraging transactions, it seems like MRO-TEK Realty insiders think the business has merit. 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. Our analysis shows 6 warning signs for MRO-TEK Realty (3 can't be ignored!) and we strongly recommend you look at them before investing.

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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