Harshbeena Zaveri Spends ₹5.1m On NRB Bearings Stock

Even if it's not a huge purchase, we think it was good to see that Harshbeena Zaveri, the Vice Chairman of NRB Bearings Limited (NSE:NRBBEARING) recently shelled out ₹5.1m to buy stock, at ₹268 per share. Nevertheless, it only increased their shareholding by a minuscule percentage, and it wasn't a massive purchase by absolute value, either.

See our latest analysis for NRB Bearings

NRB Bearings Insider Transactions Over The Last Year

The insider Aziz Zaveri made the biggest insider purchase in the last 12 months. That single transaction was for ₹31m worth of shares at a price of ₹253 each. That means that an insider was happy to buy shares at around the current price of ₹269. 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. Happily, the NRB Bearings insiders decided to buy shares at close to current prices.

While NRB Bearings insiders bought shares during the last year, they didn't sell. The average buy price was around ₹222. To my mind it is good that insiders have invested their own money in the company. However, we do note that they were buying at significantly lower prices than today's share price. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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).

Insider Ownership Of NRB Bearings

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Insiders own 16% of NRB Bearings shares, worth about ₹4.1b. 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 Do The NRB Bearings Insider Transactions Indicate?

The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest NRB Bearings insiders are well aligned, and quite possibly think the share price is too low. That's what I like to see! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Case in point: We've spotted 3 warning signs for NRB Bearings you should be aware of, and 1 of these is a bit concerning.

Of course NRB Bearings 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.

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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.