Venkatesh Rajagopal Bought 12% More Shares In Indian Terrain Fashions

Those following along with Indian Terrain Fashions Limited (NSE:INDTERRAIN) will no doubt be intrigued by the recent purchase of shares by Venkatesh Rajagopal, Executive Chairman of the company, who spent a stonking ₹57m on stock at an average price of ₹70.07. Aside from being a solid chunk in its own right, the deft move also saw their holding increase by some 12%.

Check out our latest analysis for Indian Terrain Fashions

Indian Terrain Fashions Insider Transactions Over The Last Year

Notably, that recent purchase by Venkatesh Rajagopal is the biggest insider purchase of Indian Terrain Fashions shares that we've seen in the last year. That means that even when the share price was higher than ₹55.19 (the recent price), an insider wanted to purchase shares. 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. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

While Indian Terrain Fashions insiders bought shares during the last year, they didn't sell. 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!

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership Of Indian Terrain Fashions

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. Indian Terrain Fashions insiders own about ₹1.0b worth of shares (which is 40% of the company). 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's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Indian Terrain Fashions. One for the watchlist, at least! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To help with this, we've discovered 4 warning signs (1 is concerning!) that you ought to be aware of before buying any shares in Indian Terrain Fashions.

Of course Indian Terrain Fashions may not be the best stock to buy. So you may wish to see this free collection of high quality 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.