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We often see insiders buying up shares in companies that perform well over the long term. 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 Onward Technologies Limited (NSE:ONWARDTEC).
What Is Insider Buying?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock in the company. However, most countries require that the company discloses such transactions to the market.
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.'
Check out our latest analysis for Onward Technologies
Onward Technologies Insider Transactions Over The Last Year
Notably, that recent purchase by MD & Executive Director Jigar Mehta was not the only time they bought Onward Technologies shares this year. They previously made an even bigger purchase of ₹1.8m worth of shares at a price of ₹60.18 per share. That means that an insider was happy to buy shares at around the current price of ₹61.10. That means they have been optimistic about the company in the past, though they may have changed their mind. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. In this case we're pleased to report that the insider purchases were made at close to current prices.
Over the last year, we can see that insiders have bought 221k shares worth ₹14m. Onward Technologies insiders may have bought shares in the last year, but they didn't sell any. 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!
Onward Technologies 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.
Onward Technologies Insiders Bought Stock Recently
It's good to see that Onward Technologies insiders have made notable investments in the company's shares. Jigar Mehta spent ₹9.4m on stock, and there wasn't any selling. This makes one think the business has some good points.