It is not uncommon to see companies perform well in the years after insiders buy shares. 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 before you buy or sell Deep Industries Limited (NSE:DEEPIND), 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, 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 it is perfectly logical to keep tabs on what insiders are doing. For example, a Colombia University study found that ‘insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers’.
View our latest analysis for Deep Industries
The Last 12 Months Of Insider Transactions At Deep Industries
While there weren’t any large insider transactions in the last twelve months, it’s still worth looking at the trading.
In the last twelve months insiders netted ₹836k for 3.50k shares sold. Over the last year we saw more insider selling of Deep Industries shares, than buying. The sellers received a price of around ₹239, on average. Insider selling doesn’t make us excited to buy. But we note that the selling, on average, was at well above the recently traded price of ₹129. The chart below shows insider transactions over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).
Insider Ownership
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it’s a good sign if insiders own a significant number of shares in the company. It’s great to see that Deep Industries insiders own 63% of the company, worth about ₹36m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
What Might The Insider Transactions At Deep Industries Tell Us?
There haven’t been any insider transactions in the last three months — that doesn’t mean much. It’s great to see high levels of insider ownership, but looking back at the last year, we don’t gain confidence from the Deep Industries insiders selling. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Deep Industries.