Even if it’s not a huge purchase, we think it was good to see that Yogesh Malhotra, the CEO & Whole Time Director of Gravita India Limited (NSE:GRAVITA) recently shelled out ₹1.1m to buy stock, at ₹86.43 per share. That purchase might not be huge but it did increase their holding by 47%.
Gravita India Insider Transactions Over The Last Year
While no particular insider transaction stood out, we can still look at the overall trading.
In the last twelve months Gravita India insiders were buying shares, but not selling. Their average price was about ₹59.29. To my mind it is good that insiders have invested their own money in the company. However, you should keep in mind that they bought when the share price was meaningfully below today’s levels, which is around ₹93.85. You can see the insider transactions (by companies and 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!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with 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. Gravita India insiders own 81% of the company, currently worth about ₹5.2b based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
What Might The Insider Transactions At Gravita India Tell Us?
It is good to see recent purchasing. And the longer term insider transactions also give us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Gravita India. Looks promising! So while it’s helpful to know what insiders are doing in terms of buying or selling, it’s also helpful to know the risks that a particular company is facing. At Simply Wall St, we found 4 warning signs for Gravita India that deserve your attention before buying any shares.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.
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Go to the news source: CEO & Whole Time Director Yogesh Malhotra Just Bought 47% More Shares In Gravita…