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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 Sanwaria Consumer Limited (NSE:SANWARIA), you may well want to know whether insiders have been buying or selling.
What Is Insider Buying?
It’s quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, such insiders must disclose their trading activities, and not trade on inside information.
Insider transactions are not the most important thing when it comes to long-term investing. But it is perfectly logical to keep tabs on what insiders are doing. As Peter Lynch said, ‘insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.’
See our latest analysis for Sanwaria Consumer
The Last 12 Months Of Insider Transactions At Sanwaria Consumer
Beenu Garg made the biggest insider sale in the last 12 months. That single transaction was for ₹170m worth of shares at a price of ₹18.42 each. That is hardly a positive sign, even though it took place above the latest price (₹9.50). So it may not tell us anything about how insiders feel about the current share price.
Happily, we note that in the last year insiders paid ₹638k for 48.00k shares. But insiders sold 9.28m shares worth ₹171m. In total, Sanwaria Consumer insiders sold more than they bought over the last year. The average sell price was around ₹18.40. We are not joyful about insider selling. However, we do note that the average sale price was significantly higher than the current share price (which is ₹9.50). 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!
If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).
Does Sanwaria Consumer Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Sanwaria Consumer insiders own 41% of the company, currently worth about ₹2.9b based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.