Investors who take an interest in Tanla Solutions Limited (NSE:TANLA) should definitely note that the Chairman & MD, Dasari Uday Reddy, recently paid ₹51.33 per share to buy ₹20m worth of the stock. Although the purchase only increased their holding by 0.9%, it is still a solid purchase in our view.
The Last 12 Months Of Insider Transactions At Tanla Solutions
Notably, that recent purchase by Chairman & MD Dasari Uday Reddy was not the only time they bought Tanla Solutions shares this year. They previously made an even bigger purchase of ₹67m worth of shares at a price of ₹40.00 per share. Even though the purchase was made at a significantly lower price than the recent price (₹54.60), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn’t tell us much about whether insiders might find today’s price attractive.
Over the last year, we can see that insiders have bought 8.9m shares worth ₹453m. But insiders sold 2000 shares worth ₹380k. In the last twelve months there was more buying than selling by Tanla Solutions insiders. The average buy price was around ₹50.71. It’s great to see insiders putting their own cash into the company’s stock, albeit at below the recent share price. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Insider Ownership of Tanla Solutions
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. It appears that Tanla Solutions insiders own 39% of the company, worth about ₹3.1b. While this is a strong but not outstanding level of insider ownership, it’s enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At Tanla Solutions Tell Us?
It is good to see recent purchasing. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss last year, which makes us a little cautious. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Tanla Solutions. That’s what I like to see! I like to dive deeper into how a company has performed in the past. You can find historic revenue and earnings in this detailed graph.
Of course Tanla Solutions may not be the best stock to buy. So you may wish to see this free collection of high quality 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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