Insider Spends ₹4.6m Buying More Shares In Renaissance Global

Even if it's not a huge purchase, we think it was good to see that Sumit Shah, the Non-Executive Chairman of Renaissance Global Limited (NSE:RGL) recently shelled out ₹4.6m to buy stock, at ₹135 per share. However, it only increased their shares held by 1.0%, and it wasn't a huge purchase by absolute value, either.

See our latest analysis for Renaissance Global

The Last 12 Months Of Insider Transactions At Renaissance Global

The Vice President of Operations, Parag Shah, made the biggest insider sale in the last 12 months. That single transaction was for ₹23m worth of shares at a price of ₹125 each. That means that an insider was selling shares at slightly below the current price (₹137). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. This single sale was just 8.5% of Parag Shah's stake.

Happily, we note that in the last year insiders paid ₹4.8m for 35.50k shares. On the other hand they divested 575.52k shares, for ₹71m. Over the last year we saw more insider selling of Renaissance Global shares, than buying. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

I will like Renaissance Global better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insider Ownership Of Renaissance Global

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. Insiders own 36% of Renaissance Global shares, worth about ₹5.3b. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Renaissance Global Tell Us?

It's certainly positive to see the recent insider purchases. But we can't say the same for the transactions over the last 12 months. Overall, we'd prefer see a more sustained buying from directors, but with a significant insider holding and more recent purchases, Renaissance Global insiders are reasonably well aligned, and optimistic for the future. Along with insider transactions, I recommend checking if Renaissance Global is growing revenue. This free chart of historic revenue and earnings should make that easy.

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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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.