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We often see insiders buying up shares in companies that perform well over the long term. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So shareholders might well want to know whether insiders have been buying or selling shares in Oriental Hotels Limited (NSE:ORIENTHOT).
What Is Insider Buying?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, most countries require that the company discloses such transactions to the market.
Insider transactions are not the most important thing when it comes to long-term investing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year.
Check out our latest analysis for Oriental Hotels
The Last 12 Months Of Insider Transactions At Oriental Hotels
In the last twelve months, the biggest single purchase by an insider was when insider Amit Reddy bought ₹6.0m worth of shares at a price of ₹37.89 per share. That means that even when the share price was higher than ₹36.30 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
Over the last year, we can see that insiders have bought 557893 shares worth ₹21m. On the other hand they divested 16686 shares, for ₹749k. In the last twelve months there was more buying than selling by Oriental Hotels insiders. The chart below shows insider transactions (by individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Oriental Hotels 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.
Insiders at Oriental Hotels Have Bought Stock Recently
It's good to see that Oriental Hotels insiders have made notable investments in the company's shares. In total, insiders bought ₹21m 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.