Investors who take an interest in Dabur India Limited (NSE:DABUR) should definitely note that insider Pradip Burman recently paid ₹500 per share to buy ₹7.5m worth of the stock. However, it only increased shareholding by a small percentage, and it wasn't a huge purchase by absolute value, either.
The Last 12 Months Of Insider Transactions At Dabur India
In the last twelve months, the biggest single sale by an insider was when the Vice Chairman, Mohit Burman, sold ₹9.6m worth of shares at a price of ₹520 per share. So what is clear is that an insider saw fit to sell at around the current price of ₹503. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).
Over the last year, we can see that insiders have bought 54.15k shares worth ₹26m. But insiders sold 36.33k shares worth ₹19m. In the last twelve months there was more buying than selling by Dabur India insiders. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Dabur India is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Dabur India insiders own about ₹606b worth of shares (which is 68% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Do The Dabur India Insider Transactions Indicate?
It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest Dabur India insiders are well aligned, and quite possibly think the share price is too low. That's what I like to see! Therefore, you should definitely take a look at this FREE report showing analyst forecasts for Dabur India.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.
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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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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Source-simplywall
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