In This Article:
It is not uncommon to see companies perform well in the years after insiders buy shares. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So before you buy or sell Jindal Stainless Limited (NSE:JSL), you may well want to know whether insiders have been buying or selling.
What Is Insider Buying?
It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. 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 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.
See our latest analysis for Jindal Stainless
The Last 12 Months Of Insider Transactions At Jindal Stainless
MD & Director Abhyuday Jindal made the biggest insider purchase in the last 12 months. That single transaction was for ₹5.9m worth of shares at a price of ₹39.33 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being ₹36.70). Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
Jindal Stainless insiders may have bought shares in the last year, but they didn't sell any. They paid about ₹34.13 on average. Although they bought at below the recent share price, it is good to see that insiders are willing to invest in the company. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Jindal Stainless 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 Jindal Stainless Have Bought Stock Recently
Over the last quarter, Jindal Stainless insiders have spent a meaningful amount on shares. Specifically, Chairman & MD Ratan Jindal bought ₹4.8m worth of shares in that time, and we didn't record any sales whatsoever. That shows some optimism about the company's future.