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It is not uncommon to see companies perform well in the years after insiders buy shares. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So shareholders might well want to know whether insiders have been buying or selling shares in Donear Industries Limited (NSE:DONEAR).
Do Insider Transactions Matter?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. 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 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 Donear Industries
The Last 12 Months Of Insider Transactions At Donear Industries
While no particular insider transaction stood out, we can still look at the overall trading.
In the last twelve months insiders paid ₹14m for 334.53k shares purchased. In total, Donear Industries insiders bought more than they sold over the last year. They paid about ₹42.09 on average. I’d consider this a positive as it suggests insiders see value at around the current price, which is ₹35.50. You can see a visual depiction of insider transactions over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
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.
Donear Industries Insiders Bought Stock Recently
There was some insider buying at Donear Industries over the last quarter. Vishwanath Agarwal shelled out ₹1.9m for shares in that time. It’s good to see the insider buying, as well as the lack of recent sellers. But the amount invested in the last three months isn’t enough for us too put much weight on it, as a single factor.
Insider Ownership of Donear Industries
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it’s a good sign if insiders own a significant number of shares in the company. Donear Industries insiders own about ₹1.3b worth of shares (which is 70% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.