Rajani Seshadri of Grindwell Norton Limited (NSE:GRINDWELL) Just Spent ₹1.8m On Shares

Whilst it may not be a huge deal, we thought it was good to see that Rajani Seshadri, who is a company insider, recently bought ₹1.8m worth of stock, for ₹616 per share. That purchase might not be huge but it did increase their holding by 10%.

See our latest analysis for Grindwell Norton

Grindwell Norton Insider Transactions Over The Last Year

Notably, that recent purchase by insider Rajani Seshadri was not the only time they bought Grindwell Norton shares this year. Earlier in the year, they paid ₹549 per share in a ₹3.5m purchase. That means that an insider was happy to buy shares at around the current price of ₹645. That means they have been optimistic about the company in the past, though they may have changed their mind. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. In this case we're pleased to report that the insider bought shares at close to current prices. Rajani Seshadri was the only individual insider to buy during the last year.

Rajani Seshadri bought 13.78k shares over the last 12 months at an average price of ₹562. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Does Grindwell Norton Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Grindwell Norton insiders own 8.7% of the company, worth about ₹6.2b. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About Grindwell Norton Insiders?

The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest Grindwell Norton insiders are well aligned, and quite possibly think the share price is too low. One for the watchlist, at least! If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

But note: Grindwell Norton may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.

If you decide to trade Grindwell Norton, use the lowest-cost* platform that is rated #1 Overall by Barron’s, Interactive Brokers. Trade stocks, options, futures, forex, bonds and funds on 135 markets, all from a single integrated account. Promoted

This article by Simply Wall St is general in nature. 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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

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