We’ve lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So shareholders might well want to know whether insiders have been buying or selling shares in Crompton Greaves Consumer Electricals Limited (NSE:CROMPTON).
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, such insiders must disclose their trading activities, and not trade on inside information.
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. For example, a Harvard University study found that ‘insider purchases earn abnormal returns of more than 6% per year.’
Check out our latest analysis for Crompton Greaves Consumer Electricals
Crompton Greaves Consumer Electricals Insider Transactions Over The Last Year
There wasn’t any very large single transaction over the last year, but we can still observe some trading.
You can see a visual depiction of insider transactions over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Does Crompton Greaves Consumer Electricals 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. We usually like to see fairly high levels of insider ownership. Our data isn’t picking up on much insider ownership at Crompton Greaves Consumer Electricals, though insiders do hold about ₹86k worth of shares. It’s always possible we are missing something but from our data, it looks like insider ownership is minimal.
So What Do The Crompton Greaves Consumer Electricals Insider Transactions Indicate?
It doesn’t really mean much that no insider has traded Crompton Greaves Consumer Electricals shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. We’d like to see bigger individual holdings. However, we don’t see anything to make us think Crompton Greaves Consumer Electricals insiders are doubting the company. 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, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.