A B Infrabuild's Market Cap Up ₹191m Following Year Of Insider Stock Buying

Last week, A B Infrabuild Limited (NSE:ABINFRA) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 11% last week, resulting in a ₹191m increase in the company's market worth, implying a 419% gain on their initial purchase. In other words, the original ₹35.6m purchase is now worth ₹185.1m.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for A B Infrabuild

A B Infrabuild Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Chairman & MD Amit Mishra bought ₹36m worth of shares at a price of ₹10.80 per share. Even though the purchase was made at a significantly lower price than the recent price (₹56.10), 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.

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!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Insider Ownership

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. It's great to see that A B Infrabuild insiders own 85% of the company, worth about ₹1.6b. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At A B Infrabuild Tell Us?

There haven't been any insider transactions in the last three months -- that doesn't mean much. On a brighter note, the transactions over the last year are encouraging. Judging from their transactions, and high insider ownership, A B Infrabuild insiders feel good about the company's future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing A B Infrabuild. For instance, we've identified 4 warning signs for A B Infrabuild (1 can't be ignored) you should be aware of.

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 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.