HRH Next Services Stock Down 13% But Insiders Still In ₹16m Profit

Insiders who purchased HRH Next Services Limited (NSE:HRHNEXT) shares in the past 12 months are unlikely to be deeply impacted by the stock's 13% decline over the past week. After taking the recent loss into consideration, the ₹36.4m worth of stock they bought is now worth ₹51.9m, indicating that their investment yielded a positive return.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for HRH Next Services

The Last 12 Months Of Insider Transactions At HRH Next Services

Over the last year, we can see that the biggest insider purchase was by MD & Director Ankit Shah for ₹16m worth of shares, at about ₹40.00 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of ₹57.15. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

In the last twelve months HRH Next Services insiders were buying shares, but not selling. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

HRH Next Services is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Does HRH Next Services 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. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that HRH Next Services insiders own 79% of the company, worth about ₹415m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At HRH Next Services Tell Us?

The fact that there have been no HRH Next Services insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. It would be great to see more insider buying, but overall it seems like HRH Next Services insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. You'd be interested to know, that we found 2 warning signs for HRH Next Services and we suggest you have a look.

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.