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We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So before you buy or sell Globus Spirits Limited (NSE:GLOBUSSPR), you may well want to know whether insiders have been buying or selling.
Do Insider Transactions Matter?
It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, rules govern insider transactions, and certain disclosures are required.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But equally, we would consider it foolish to ignore insider transactions altogether. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.'
Check out our latest analysis for Globus Spirits
Globus Spirits Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Joint MD & Executive Director Shekhar Swarup for ₹9.0m worth of shares, at about ₹139 per share. That means that an insider was happy to buy shares at around the current price of ₹142. That means they have been optimistic about the company in the past, though they may have changed their mind. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. In this case we're pleased to report that the insider purchases were made at close to current prices.
In the last twelve months insiders paid ₹22m for 161k shares purchased. In the last twelve months Globus Spirits insiders were buying shares, but not selling. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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).
Globus Spirits Insiders Bought Stock Recently
It's good to see that Globus Spirits insiders have made notable investments in the company's shares. Overall, two insiders shelled out ₹9.8m for shares in the company -- and none sold. This makes one think the business has some good points.