Insiders Of Cantabil Retail India Are Up 23% On Their ₹148.5m Purchase

Last week, Cantabil Retail India Limited (NSE:CANTABIL) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 10.0% last week, resulting in a ₹2.0b increase in the company's market worth, implying a 23% gain on their initial purchase. Put another way, the original ₹148.5m acquisition is now worth ₹182.2m.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for Cantabil Retail India

Cantabil Retail India Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Founder Vijay Bansal bought ₹81m worth of shares at a price of ₹217 per share. We do like to see buying, but this purchase was made at well below the current price of ₹268. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

While Cantabil Retail India insiders bought shares during the last year, they didn't sell. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Cantabil Retail India 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 Cantabil Retail India Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Cantabil Retail India insiders own about ₹17b worth of shares (which is 76% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About Cantabil Retail India Insiders?

The fact that there have been no Cantabil Retail India insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. Judging from their transactions, and high insider ownership, Cantabil Retail India insiders feel good about the company's future. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Case in point: We've spotted 2 warning signs for Cantabil Retail India you should be aware of.

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 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.