Insider Buying: NRB Bearings Vice Chairman Bought ₹19m Of Shares

Investors who take an interest in NRB Bearings Limited (NSE:NRBBEARING) should definitely note that the Vice Chairman, Harshbeena Zaveri, recently paid ₹280 per share to buy ₹19m worth of the stock. However, it only increased shareholding by a small percentage, and it wasn't a huge purchase by absolute value, either.

View our latest analysis for NRB Bearings

The Last 12 Months Of Insider Transactions At NRB Bearings

In fact, the recent purchase by Vice Chairman Harshbeena Zaveri was not their only acquisition of NRB Bearings shares this year. They previously made an even bigger purchase of ₹48m worth of shares at a price of ₹320 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being ₹282). 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. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

NRB Bearings insiders may have bought shares in the last year, but they didn't sell any. 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!

NRB Bearings is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership Of NRB Bearings

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Insiders own 16% of NRB Bearings shares, worth about ₹4.4b. 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 purchases are heartening. 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 NRB Bearings. Looks promising! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing NRB Bearings. To that end, you should learn about the 3 warning signs we've spotted with NRB Bearings (including 1 which doesn't sit too well with us).

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 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.