We often see insiders buying up shares in companies that perform well over the long term. On the other hand, we’d be remiss not to mention that insider sales have been known to precede tough periods for a business. So before you buy or sell Crompton Greaves Consumer Electricals Limited (NSE:CROMPTON), you may well want to know whether insiders have been buying or selling.
What Is Insider Selling?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, rules govern insider transactions, and certain disclosures are required.
We don’t think shareholders should simply follow insider transactions. But logic dictates you should pay some attention to whether insiders are buying or selling shares. As Peter Lynch said, ‘insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.’
Check out our latest analysis for Crompton Greaves Consumer Electricals
The Last 12 Months Of Insider Transactions At Crompton Greaves Consumer Electricals
In the last twelve months, the biggest single purchase by an insider was when Shaji Abraham bought ₹13m worth of shares at a price of ₹187 per share. We do like to see buying, but this purchase was made at well below the current price of ₹234. 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.
You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
Crompton Greaves Consumer Electricals is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Does Crompton Greaves Consumer Electricals Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Our information indicates that Crompton Greaves Consumer Electricals insiders own about ₹47m worth of shares. We might be missing something but that seems like very low insider ownership.
So What Do The Crompton Greaves Consumer Electricals Insider Transactions Indicate?
There haven’t been any insider transactions in the last three months — that doesn’t mean much. But insiders have shown more of an appetite for the stock, over the last year. Overall we don’t see anything to make us think Crompton Greaves Consumer Electricals insiders are doubting the company, and they do own shares. Of course, the future is what matters most. So if you are interested in Crompton Greaves Consumer Electricals, you should check out this free report on analyst forecasts for the company.
Of course Crompton Greaves Consumer Electricals may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.