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 before you buy or sell Sterling Tools Limited (NSE:STERTOOLS), you may well want to know whether insiders have been buying or selling.

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, such insiders must disclose their trading activities, and not trade on inside information.

We don't think shareholders should simply follow insider transactions. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.

Check out our latest analysis for Sterling Tools

Sterling Tools Insider Transactions Over The Last Year

Whole Time Director Atul Aggarwal made the biggest insider purchase in the last 12 months. That single transaction was for ₹12m worth of shares at a price of ₹162 each. That means that an insider was happy to buy shares at around the current price of ₹169. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. 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 Sterling Tools insiders decided to buy shares at close to current prices.

While Sterling Tools insiders bought shares last year, they didn't sell. The chart below shows insider transactions (by individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Sterling Tools 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.

Sterling Tools Insiders Bought Stock Recently

It's good to see that Sterling Tools insiders have made notable investments in the company's shares. Not only was there no selling that we can see, but they collectively bought ₹24m worth of shares. This makes one think the business has some good points.