Trade Alert: Aziz Zaveri At NRB Bearings Limited (NSE:NRBBEARING), Has Just Spent ₹2.0m Buying 3.7% More Shares

Whilst it may not be a huge deal, we thought it was good to see that Aziz Zaveri, who is a company insider, recently bought ₹2.0m worth of stock, for ₹75.97 per share. However, it only increased their shares held by 3.7%, 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

Over the last year, we can see that the biggest insider purchase was by Vice Chairman Harshbeena Zaveri for ₹6.1m worth of shares, at about ₹78.88 per share. That implies that an insider found the current price of ₹83.70 per share to be enticing. 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. In this case we're pleased to report that the insider purchases were made at close to current prices.

In the last twelve months NRB Bearings insiders were buying shares, but not selling. They paid about ₹70.71 on average. These transactions show that insiders have confidence to invest their own money in the stock, albeit at slightly below the recent price. 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. 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).

Does NRB Bearings Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with 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. Insiders own 14% of NRB Bearings shares, worth about ₹1.2b. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At NRB Bearings Tell Us?

It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. 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. Nice! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. When we did our research, we found 4 warning signs for NRB Bearings (2 are significant!) that we believe deserve your full attention.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

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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