Have Insiders Been Buying Gujarat Apollo Industries Limited (NSE:GUJAPOLLO) Shares?

It is not uncommon to see companies perform well in the years after insiders buy shares. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So before you buy or sell Gujarat Apollo Industries Limited (NSE:GUJAPOLLO), you may well want to know whether insiders have been buying or selling.

What Is Insider Buying?

Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock in the company. However, such insiders must disclose their trading activities, and not trade on inside information.

Insider transactions are not the most important thing when it comes to long-term investing. But equally, we would consider it foolish to ignore insider transactions altogether. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.

Check out our latest analysis for Gujarat Apollo Industries

The Last 12 Months Of Insider Transactions At Gujarat Apollo Industries

The insider Nita Patel made the biggest insider purchase in the last 12 months. That single transaction was for ₹6.7m worth of shares at a price of ₹129 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of ₹186. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Nita Patel bought 97.28k shares over the last 12 months at an average price of ₹129. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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

Does Gujarat Apollo Industries Boast High 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that Gujarat Apollo Industries insiders own 71% of the company, worth about ₹1.7b. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The Gujarat Apollo Industries Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Gujarat Apollo Industries shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. It would be great to see more insider buying, but overall it seems like Gujarat Apollo Industries insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Gujarat Apollo Industries. Case in point: We've spotted 4 warning signs for Gujarat Apollo Industries you should be aware of.

Of course Gujarat Apollo Industries 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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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.
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