Hindware Home Innovation Non Executive Chairman Acquires 1.7% More Stock

Potential Hindware Home Innovation Limited (NSE:HINDWAREAP) shareholders may wish to note that the Non Executive Chairman, Sandip Somany, recently bought ₹23m worth of stock, paying ₹183 for each share. Although the purchase only increased their holding by 1.7%, it is still a solid purchase in our view.

Check out our latest analysis for Hindware Home Innovation

The Last 12 Months Of Insider Transactions At Hindware Home Innovation

In fact, the recent purchase by Sandip Somany was the biggest purchase of Hindware Home Innovation shares made by an insider individual in the last twelve months, according to our records. We do like to see buying, but this purchase was made at well below the current price of ₹211. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

The chart below shows insider transactions (by companies and individuals) over the last year. 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. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 14% of Hindware Home Innovation shares, worth about ₹2.4b. 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 Do The Hindware Home Innovation Insider Transactions Indicate?

It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Hindware Home Innovation. One for the watchlist, at least! While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. When we did our research, we found 2 warning signs for Hindware Home Innovation (1 is a bit concerning!) that we believe deserve your full attention.

Of course Hindware Home Innovation 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.

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

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.