Who Has Been Buying Vakrangee Limited (NSE:VAKRANGEE) Shares?

We often see insiders buying up shares in companies that perform well over the long term. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So before you buy or sell Vakrangee Limited (NSE:VAKRANGEE), you may well want to know whether insiders have been buying or selling.

What Is Insider Selling?

It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. 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 logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year'.

View our latest analysis for Vakrangee

Vakrangee Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by MD, Group CEO & Executive Director Dinesh Nandwana for ₹54m worth of shares, at about ₹30.81 per share. That means that an insider was happy to buy shares at above the current price of ₹30.10. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Dinesh Nandwana was the only individual insider to buy during the last year.

Dinesh Nandwana bought a total of 4.05m shares over the year at an average price of ₹33.91. You can see a visual depiction of insider transactions (by companies and 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!

Vakrangee is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership of Vakrangee

Many investors like to check how much of a company is owned by insiders. 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 Vakrangee insiders own 8.6% of the company, worth about ₹2.7b. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Vakrangee Insiders?

It doesn't really mean much that no insider has traded Vakrangee shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. Judging from their transactions, and high insider ownership, Vakrangee insiders feel good about the company's future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example, Vakrangee has 4 warning signs (and 1 which can't be ignored) we think you should know about.

Of course Vakrangee 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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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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