Who Has Been Buying Mittal Life Style Limited (NSE:MITTAL) Shares?
It is not uncommon to see companies perform well in the years after insiders buy shares. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So before you buy or sell Mittal Life Style Limited (NSE:MITTAL), you may well want to know whether insiders have been buying or selling.
Do Insider Transactions Matter?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, rules govern insider transactions, and certain disclosures are required.
Insider transactions are not the most important thing when it comes to long-term investing. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year.'
View our latest analysis for Mittal Life Style
The Last 12 Months Of Insider Transactions At Mittal Life Style
Over the last year, we can see that the biggest insider purchase was by Chairman & Managing Director Brijeshkumar Mittal for ₹4.6m worth of shares, at about ₹13.47 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of ₹101. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
Brijeshkumar Mittal bought a total of 490k shares over the year at an average price of ₹13.43. 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!
Mittal Life Style is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership of Mittal Life Style
Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Mittal Life Style insiders own about ₹379m worth of shares. That equates to 31% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At Mittal Life Style 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. It would be great to see more insider buying, but overall it seems like Mittal Life Style insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. I like to dive deeper into how a company has performed in the past. You can access this interactive graph of past earnings, revenue and cash flow for free .
But note: Mittal Life Style may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body.
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If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
