Stock Analysis

Trade Alert: Manju Taparia At Everest Industries Limited (NSE:EVERESTIND), Has Just Spent ₹2.8m Buying 250% More Shares

NSEI:EVERESTIND
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Whilst it may not be a huge deal, we thought it was good to see that Manju Taparia, who is a company insider, recently bought ₹2.8m worth of stock, for ₹285 per share. While that isn't the hugest buy, it actually boosted their shareholding by 250%, which is good to see.

See our latest analysis for Everest Industries

The Last 12 Months Of Insider Transactions At Everest Industries

In fact, the recent purchase by Manju Taparia was the biggest purchase of Everest Industries shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, at around the current price, which is ₹294. That means they have been optimistic about the company in the past, though they may have changed their mind. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for Everest Industries share holders is that insiders were buying at near the current price.

Everest Industries insiders may have bought shares in the last year, but they didn't sell any. The average buy price was around ₹210. It is certainly positive to see that insiders have invested their own money in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels, which is around ₹294. 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!

insider-trading-volume
NSEI:EVERESTIND Insider Trading Volume February 7th 2021

Everest Industries 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

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. From our data, it seems that Everest Industries insiders own 8.0% of the company, worth about ₹367m. But they may have an indirect interest through a corporate structure that we haven't picked up on. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

What Might The Insider Transactions At Everest Industries Tell Us?

The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Everest Industries. That's what I like to see! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. You'd be interested to know, that we found 2 warning signs for Everest Industries and we suggest you have a look.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

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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