Ador Welding MD & Director Acquires 3.2% More Stock

Whilst it may not be a huge deal, we thought it was good to see that the Ador Welding Limited (NSE:ADORWELD) MD & Director, Aditya Malkani, recently bought ₹5.0m worth of stock, for ₹1,254 per share. However, it only increased their shares held by 3.2%, and it wasn't a huge purchase by absolute value, either.

See our latest analysis for Ador Welding

The Last 12 Months Of Insider Transactions At Ador Welding

In fact, the recent purchase by Aditya Malkani was the biggest purchase of Ador Welding shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of ₹1,383 per share to be enticing. 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. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. The good news for Ador Welding share holders is that insiders were buying at near the current price.

Ador Welding insiders may have bought shares in the last year, but they didn't sell any. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Ador Welding is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, 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 14% of Ador Welding shares, worth about ₹2.7b. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About Ador Welding Insiders?

It is good to see recent purchasing. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest Ador Welding insiders are well aligned, and quite possibly think the share price is too low. One for the watchlist, at least! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Ador Welding. Case in point: We've spotted 2 warning signs for Ador Welding you should be aware of, and 1 of them is significant.

Of course Ador Welding 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com