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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 NRB Bearings Limited (NSE:NRBBEARING), you may well want to know whether insiders have been buying or selling.

Do Insider Transactions Matter?

Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, rules govern insider transactions, and certain disclosures are required.

We don't think shareholders should simply follow insider transactions. 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.'

See our latest analysis for NRB Bearings

NRB Bearings Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Vice Chairman Harshbeena Zaveri bought ₹14m worth of shares at a price of ₹172 per share. That means that even when the share price was higher than ₹163 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. 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.

Happily, we note that in the last year insiders bought 236k shares for a total of ₹39m. In the last twelve months NRB Bearings insiders were buying shares, but not selling. 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!

NRB Bearings 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.

NRB Bearings Insiders Bought Stock Recently

Over the last three months, we've seen significant insider buying at NRB Bearings. In total, insiders bought ₹28m worth of shares in that time, and we didn't record any sales whatsoever. This is a positive in our book as it implies some confidence.