Salzer Electronics Insider Buyers Net ₹7.8m Despite 10% Stock Decline

Salzer Electronics Limited (NSE:SALZERELEC) insiders who acquired shares over the previous 12 months, can probably afford to ignore the recent 10% decline in the stock price. Reason being, despite the recent loss, insiders original purchase value of ₹14.6m is now worth ₹22.4m.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for Salzer Electronics

The Last 12 Months Of Insider Transactions At Salzer Electronics

The Non-Executive Non-Independent Director Vishnurangaswamy Doraiswamy made the biggest insider purchase in the last 12 months. That single transaction was for ₹13m worth of shares at a price of ₹726 each. Even though the purchase was made at a significantly lower price than the recent price (₹1,020), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Vishnurangaswamy Doraiswamy purchased 21.95k shares over the year. The average price per share was ₹664. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Salzer Electronics 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.

Does Salzer Electronics Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Salzer Electronics insiders own about ₹3.5b worth of shares. That equates to 19% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Salzer Electronics Insiders?

It doesn't really mean much that no insider has traded Salzer Electronics shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. It would be great to see more insider buying, but overall it seems like Salzer Electronics insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Salzer Electronics. For instance, we've identified 2 warning signs for Salzer Electronics (1 is a bit unpleasant) you should be aware of.

Of course Salzer Electronics 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.