A. Shimarna Just Bought 2.9% More Shares In Tamilnad Mercantile Bank Limited (NSE:TMB)

Investors who take an interest in Tamilnad Mercantile Bank Limited (NSE:TMB) should definitely note that insider A. Shimarna recently paid ₹408 per share to buy ₹12m worth of the stock. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 2.9%. Notably, that recent purchase by A. Shimarna is the biggest insider purchase of Tamilnad Mercantile Bank shares that we've seen in the last year. That means that even when the share price was higher than ₹405 (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. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

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