The Executive Chairman of Orient Bell Limited (NSE:ORIENTBELL), Mahendra Daga, Just Bought A Few More Shares

Even if it's not a huge purchase, we think it was good to see that Mahendra Daga, the Executive Chairman of Orient Bell Limited (NSE:ORIENTBELL) recently shelled out ₹5.4m to buy stock, at ₹241 per share. Nevertheless, it only increased their shareholding by a minuscule percentage, and it wasn't a massive purchase by absolute value, either.

Check out our latest analysis for Orient Bell

The Last 12 Months Of Insider Transactions At Orient Bell

Notably, that recent purchase by Mahendra Daga is the biggest insider purchase of Orient Bell shares that we've seen in the last year. So it's clear an insider wanted to buy, even at a higher price than the current share price (being ₹243). It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Mahendra Daga was the only individual insider to buy shares in the last twelve months.

Mahendra Daga purchased 49.14k shares over the year. The average price per share was ₹169. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Orient Bell is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Does Orient Bell Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 16% of Orient Bell shares, worth about ₹539m. 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 Does This Data Suggest About Orient Bell Insiders?

It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Orient Bell. 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. For example, Orient Bell has 4 warning signs (and 1 which makes us a bit uncomfortable) we think you should know about.

But note: Orient Bell may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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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