In This Article:
It is not uncommon to see companies perform well in the years after insiders buy shares. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So before you buy or sell NCC Limited (NSE:NCC), you may well want to know whether insiders have been buying or selling.
What Is Insider Buying?
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 don't think shareholders should simply follow insider transactions. But logic dictates you should pay some attention to whether insiders are buying or selling shares. 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'.
Check out our latest analysis for NCC
The Last 12 Months Of Insider Transactions At NCC
Over the last year, we can see that the biggest insider sale was by the insider, Alluri Raju, for ₹10.0m worth of shares, at about ₹78.11 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (₹53.80). So it may not shed much light on insider confidence at current levels.
All up, insiders sold more shares in NCC than they bought, over the last year. 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!
For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insiders at NCC Have Sold Stock Recently
We've seen more insider selling than insider buying at NCC recently. We note insider V. Radhakrishna cashed in ₹5.1m worth of shares. On the other hand we note insider Alluri Sravani bought ₹1.1m worth of shares, as previously mentioned. We don't view these transactions as a positive sign.
Insider Ownership of NCC
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that NCC insiders own 17% of the company, worth about ₹5.6b. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.