How Many Insiders Bought Nitin Spinners Limited (NSE:NITINSPIN) Shares?
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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 we’ll take a look at whether insiders have been buying or selling shares in Nitin Spinners Limited (NSE:NITINSPIN).
Do Insider Transactions Matter?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, most countries require that the company discloses such transactions to the market.
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. For example, a Harvard University study found that ‘insider purchases earn abnormal returns of more than 6% per year.’
See our latest analysis for Nitin Spinners
The Last 12 Months Of Insider Transactions At Nitin Spinners
Executive Chairman Ratan Nolkha made the biggest insider purchase in the last 12 months. That single transaction was for ₹36m worth of shares at a price of ₹88.19 each. So it’s clear an insider wanted to buy, even at a higher price. Their view may have changed since then, but at least it shows they felt optimistic at the time. That purchase may suggest an expectation of positive returns over the long term.
In the last twelve months insiders paid ₹53m for 606.00k shares purchased. In total, Nitin Spinners insiders bought more than they sold over the last year. Their average price was about ₹87.95. I’d consider this a positive as it suggests insiders see value at around the current price, which is ₹72.80. You can see the insider transactions (by individuals) over the last year depicted in the chart below. 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).
Nitin Spinners Insiders Bought Stock Recently
It’s good to see that Nitin Spinners insiders have made notable investments in the company’s shares. Specifically, Executive Director Nitin Nolkha bought ₹4.6m worth of shares in that time, and we didn’t record any sales whatsoever. That shows some optimism about the company’s future.
Insider Ownership of Nitin Spinners
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Nitin Spinners insiders own 26% of the company, worth about ₹1.1b. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At Nitin Spinners Tell Us?
The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Nitin Spinners. One for the watchlist, at least! Of course, the future is what matters most. So if you are interested in Nitin Spinners, you should check out this free report on analyst forecasts for the company.
Of course Nitin Spinners may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
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If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
