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 UFO Moviez India Limited (NSE:UFO), 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.

We don’t think shareholders should simply follow insider transactions. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Columbia 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’.

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The Last 12 Months Of Insider Transactions At UFO Moviez India

While no particular insider transaction stood out, we can still look at the overall trading.

Happily, we note that in the last year insiders bought 14.00k shares for a total of ₹4.0m. Overall, UFO Moviez India insiders were net buyers last year. Their average price was about ₹287. This is nice to see since it implies that insiders might see value around current prices (around ₹257). 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!

UFO Moviez India 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.

UFO Moviez India Insiders Bought Stock Recently

It’s good to see that UFO Moviez India insiders have made notable investments in the company’s shares. Overall, 2 insiders shelled out ₹4.0m for shares in the company — and none sold. This could be interpreted as suggesting a positive outlook.

Insider Ownership of UFO Moviez India

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Insiders own 5.2% of UFO Moviez India shares, worth about ₹384m, according to our data. But they may have an indirect interest through a corporate structure that we haven’t picked up on. Overall, this level of ownership isn’t that impressive, but it’s certainly better than nothing!