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Insider Buying: The KHFM Hospitality and Facility Management Services Limited (NSE:KHFM) Executive Director Just Bought ₹176k Worth Of Shares

Simply Wall St

Even if it's not a huge purchase, we think it was good to see that Sujata Hegde, the Executive Director of KHFM Hospitality and Facility Management Services Limited (NSE:KHFM) recently shelled out ₹176k to buy stock, at ₹29.33 per share. That might not be a big purchase but it only increased their holding by 0.6%, and could be interpreted as a good sign.

See our latest analysis for KHFM Hospitality and Facility Management Services

The Last 12 Months Of Insider Transactions At KHFM Hospitality and Facility Management Services

In fact, the recent purchase by Sujata Hegde was the biggest purchase of KHFM Hospitality and Facility Management Services shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was higher than ₹26.10 (the recent price), an insider wanted to purchase shares. 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. To us, it's very important to consider the price insiders pay for shares is very important. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. The only individual insider to buy over the last year was Sujata Hegde.

The chart below shows insider transactions (by individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

NSEI:KHFM Recent Insider Trading, October 25th 2019

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership of KHFM Hospitality and Facility Management Services

For a common shareholder, it is worth checking how many shares are held by company 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. KHFM Hospitality and Facility Management Services insiders own about ₹182m worth of shares (which is 70% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At KHFM Hospitality and Facility Management Services Tell Us?

The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about KHFM Hospitality and Facility Management Services. Looks promising! 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.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

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.