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

Investors who take an interest in Orient Bell Limited (NSE:ORIENTBELL) should definitely note that the Executive Chairman, Mahendra Daga, recently paid ₹500 per share to buy ₹20m worth of the stock. However, it only increased shareholding by a small percentage, and it wasn't a huge purchase by absolute value, either.

Check out our latest analysis for Orient Bell

Orient Bell Insider Transactions Over The Last Year

In fact, the recent purchase by Mahendra Daga was the biggest purchase of Orient Bell shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at around the current price of ₹505. 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. The good news for Orient Bell share holders is that insiders were buying at near the current price.

Orient Bell 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!

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

Insider Ownership Of Orient Bell

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. A high insider ownership often makes company leadership more mindful of shareholder interests. Orient Bell insiders own 43% of the company, currently worth about ₹3.1b based on the recent share price. 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 Orient Bell Insider Transactions Indicate?

It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest Orient Bell insiders are well aligned, and quite possibly think the share price is too low. One for the watchlist, at least! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Orient Bell. In terms of investment risks, we've identified 1 warning sign with Orient Bell and understanding it should be part of your investment process.

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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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.