Indian Terrain Fashions Up 15%, Insiders Still Down After ₹57.5m Purchase

Insiders who bought ₹57.5m worth of Indian Terrain Fashions Limited (NSE:INDTERRAIN) stock in the last year have seen some of their losses recouped as the stock gained 15% last week. However, the purchase is proving to be a costly gamble, since losses made by insiders have totalled ₹27m since the time of purchase.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Our free stock report includes 2 warning signs investors should be aware of before investing in Indian Terrain Fashions. Read for free now.

The Last 12 Months Of Insider Transactions At Indian Terrain Fashions

In the last twelve months, the biggest single purchase by an insider was when Executive Chairman Venkatesh Rajagopal bought ₹57m worth of shares at a price of ₹70.07 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being ₹37.13). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We always take careful note of the price insiders pay when purchasing shares. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. The only individual insider to buy over the last year was Venkatesh Rajagopal.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

See our latest analysis for Indian Terrain Fashions

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Does Indian Terrain Fashions Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Indian Terrain Fashions insiders own 43% of the company, currently worth about ₹740m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About Indian Terrain Fashions Insiders?

It doesn't really mean much that no insider has traded Indian Terrain Fashions shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. With high insider ownership and encouraging transactions, it seems like Indian Terrain Fashions insiders think the business has merit. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Be aware that Indian Terrain Fashions is showing 2 warning signs in our investment analysis, and 1 of those is a bit concerning...

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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