Insider Buying: The CSB Bank Limited (NSE:CSBBANK) Non-Executive Director Just Bought 55% More Shares

Whilst it may not be a huge deal, we thought it was good to see that the CSB Bank Limited (NSE:CSBBANK) Non-Executive Director, Madhavan Menon, recently bought ₹795k worth of stock, for ₹227 per share. While that isn't the hugest buy, it actually boosted their shareholding by 55%, which is good to see.

See our latest analysis for CSB Bank

The Last 12 Months Of Insider Transactions At CSB Bank

In fact, the recent purchase by Madhavan Menon was the biggest purchase of CSB Bank shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was higher than ₹225 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. 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. Madhavan Menon was the only individual insider to buy shares in the last twelve months.

You can see the insider transactions (by companies and 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!

CSB Bank is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

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. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 12% of CSB Bank shares, worth about ₹4.6b. 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 CSB Bank Tell Us?

It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest CSB Bank insiders are well aligned, and quite possibly think the share price is too low. Looks promising! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. While conducting our analysis, we found that CSB Bank has 1 warning sign and it would be unwise to ignore this.

Of course CSB Bank 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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