Even if it's not a huge purchase, we think it was good to see that Sorab Mody, the MD & Executive Director of Mazda Limited (NSE:MAZDA) recently shelled out ₹5.3m to buy stock, at ₹528 per share. Nevertheless, it only increased their shareholding by a minuscule percentage, and it wasn't a massive purchase by absolute value, either.
Mazda Insider Transactions Over The Last Year
In fact, the recent purchase by Sorab Mody was the biggest purchase of Mazda shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was higher than ₹526 (the recent price), an insider wanted to purchase shares. 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. To us, it's very important to consider the price insiders pay for shares is very important. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. The only individual insider to buy over the last year was Sorab Mody.
Sorab Mody purchased 35.64k shares over the year. The average price per share was ₹470. The chart below shows insider transactions (by companies and individuals) over the last year. 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.
Insider Ownership of Mazda
Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Mazda insiders own about ₹1.2b worth of shares (which is 54% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Do The Mazda Insider Transactions Indicate?
It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Mazda. That's what I like to see! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Mazda. Every company has risks, and we've spotted 3 warning signs for Mazda you should know about.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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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