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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 we’ll take a look at whether insiders have been buying or selling shares in Indian Terrain Fashions Limited (NSE:INDTERRAIN).
Do Insider Transactions Matter?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, rules govern insider transactions, and certain disclosures are required.
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 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’.
Check out our latest analysis for Indian Terrain Fashions
The Last 12 Months Of Insider Transactions At Indian Terrain Fashions
Whole Time Director Rama Rajagopal made the biggest insider purchase in the last 12 months. That single transaction was for ₹6.6m worth of shares at a price of ₹132 each. So it’s clear an insider wanted to buy, at around the current price. Of course they may have changed their mind. But this suggests they are optimistic. Nonetheless, we consider it positive if insiders want to buy at around the current share price. Rama Rajagopal was the only buyer over the year.
You can see the insider transactions 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!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Are Indian Terrain Fashions Insiders Buying Or Selling?
Over the last three months, we’ve seen a bit of insider selling at Indian Terrain Fashions. MD, CEO & Director Charath Narsimhan only netted ₹574k selling shares, in that period. It’s not great to see insider selling, nor the lack of recent buyers. But the volume sold is so low that it really doesn’t bother us.
Insider Ownership of Indian Terrain Fashions
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Indian Terrain Fashions insiders own about ₹24m worth of shares. That equates to 35% of the company. While this is strong but not in the top group, when it comes to insider ownership, it’s enough to indicate some alignment between management and smaller shareholders.