In This Article:
We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So shareholders might well want to know whether insiders have been buying or selling shares in JM Financial Limited (NSE:JMFINANCIL).
Do Insider Transactions Matter?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock in the company. However, rules govern insider transactions, and certain disclosures are required.
We don't think shareholders should simply follow insider transactions. But equally, we would consider it foolish to ignore insider transactions altogether. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.'
Check out our latest analysis for JM Financial
The Last 12 Months Of Insider Transactions At JM Financial
insider Karan Uberoi made the biggest insider purchase in the last 12 months. That single transaction was for ₹18m worth of shares at a price of ₹90.05 each. That means that even when the share price was higher than ₹70.30 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
Happily, we note that in the last year insiders paid ₹96m for 1.2m shares. But insiders sold 705k shares worth ₹63m. In the last twelve months there was more buying than selling by JM Financial insiders. 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!
JM Financial 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.
Insiders at JM Financial Have Bought Stock Recently
Over the last three months, we've seen a bit of insider buying at JM Financial. In that period Group MD & Director Vishal Kampani spent ₹5.0m on shares. On the other hand, they sold ₹3.7m worth of shares. It is nice to see that insiders have bought, but the quantum isn't large enough to get us excited.