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Even if it's not a huge purchase, we think it was good to see that Urmila Bhuwalka, a JSW Steel Limited (NSE:JSWSTEEL) insider, recently shelled out ₹2.2m to buy stock, at ₹222 per share. However, we do note that it only increased their holding by 3.4%, and it wasn't a huge purchase by absolute value, either.
Check out our latest analysis for JSW Steel
JSW Steel Insider Transactions Over The Last Year
Notably, that recent purchase by insider Urmila Bhuwalka was not the only time they bought JSW Steel shares this year. They previously made an even bigger purchase of ₹2.2m worth of shares at a price of ₹222 per share. So it's clear an insider wanted to buy, at around the current price, which is ₹233. That means they have been optimistic about the company in the past, though they may have changed their mind. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. Happily, the JSW Steel insider decided to buy shares at close to current prices. Urmila Bhuwalka was the only individual insider to buy over the year.
Urmila Bhuwalka bought a total of 19000 shares over the year at an average price of ₹220. The chart below shows insider transactions (by individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
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. We usually like to see fairly high levels of insider ownership. JSW Steel insiders own about ₹9.5b worth of shares (which is 1.6% of the company). 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 JSW Steel Insider Transactions Indicate?
It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest JSW Steel insiders are well aligned, and quite possibly think the share price is too low. One for the watchlist, at least! If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.