In This Article:
Want to participate in a research study? Help shape the future of investing tools and earn a $60 gift card!
We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. 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 Relaxo Footwears Limited (NSE:RELAXO), you may well want to know whether insiders have been buying or selling.
What Is Insider Selling?
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 equally, we would consider it foolish to ignore insider transactions altogether. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year.'
View our latest analysis for Relaxo Footwears
The Last 12 Months Of Insider Transactions At Relaxo Footwears
In the last twelve months, the biggest single purchase by an insider was when MD & Director Ramesh Dua bought ₹724m worth of shares at a price of ₹494 per share. Although we like to see insider buying, we note that this large purchase was at significantly lower prices. The insider buying may not tell us much about how insiders feel about the current share price.
In the last twelve months insiders purchased 3.45m shares for ₹1.7b. But insiders sold 62.34k shares worth ₹47m. In total, Relaxo Footwears insiders bought more than they sold over the last year. Their average price was about ₹494. It is certainly positive to see that insiders have invested their own money in the company. However, we do note that they were buying at significantly lower prices than today's share price. You can see the insider transactions (by individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
Relaxo Footwears is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insiders at Relaxo Footwears Have Bought Stock Recently
There has been significantly more insider buying, than selling, at Relaxo Footwears, over the last three months. In total, 7 insiders bought ₹1.7b worth of shares in that time. On the other hand, insiders netted ₹24m by selling. Insiders have spent more buying shares than they have selling, so on balance we think they are are probably optimistic.