Bajaj Auto Insiders Placed Bullish Bets Worth ₹4.82b

Quite a few insiders have dramatically grown their holdings in Bajaj Auto Limited (NSE:BAJAJ-AUTO) over the past 12 months. An insider's optimism about the company's prospects is a positive sign.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Bajaj Auto

Bajaj Auto Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Non-Executive Director Sanjivnayan Bajaj for ₹1.9b worth of shares, at about ₹4,597 per share. We do like to see buying, but this purchase was made at well below the current price of ₹8,904. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

In the last twelve months insiders purchased 1.05m shares for ₹4.8b. On the other hand they divested 121.14k shares, for ₹689m. In total, Bajaj Auto insiders bought more than they sold over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

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

Insiders At Bajaj Auto Have Sold Stock Recently

The last three months saw significant insider selling at Bajaj Auto. Specifically, insiders ditched ₹223m worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain.

Insider Ownership Of Bajaj Auto

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. Bajaj Auto insiders own about ₹76b worth of shares (which is 3.1% 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.

What Might The Insider Transactions At Bajaj Auto Tell Us?

Insiders sold stock recently, but they haven't been buying. But we take heart from prior transactions. On top of that, insiders own a significant portion of the company. So we're not too bothered by recent selling. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. In terms of investment risks, we've identified 2 warning signs with Bajaj Auto and understanding them should be part of your investment process.

Of course Bajaj Auto 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 of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.