Even with VIP Clothing Limited (NSE:VIPCLOTHNG) stock down 13% this week, insiders who bought recently netted around ₹136k

By
Simply Wall St
Published
February 25, 2022
NSEI:VIPCLOTHNG
Source: Shutterstock

Insiders who bought VIP Clothing Limited (NSE:VIPCLOTHNG) in the last 12 months may probably not pay attention to the stock's recent 13% drop. After accounting for the recent loss, the ₹2.1m worth of shares they purchased is now worth ₹2.2m, suggesting a good return on their investment.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for VIP Clothing

VIP Clothing 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.

Sunil Pathare bought a total of 102.45k shares over the year at an average price of ₹20.22. 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!

insider-trading-volume
NSEI:VIPCLOTHNG Insider Trading Volume February 25th 2022

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

Insider Ownership of VIP Clothing

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. I reckon it's a good sign if insiders own a significant number of shares in the company. VIP Clothing insiders own about ₹975m worth of shares (which is 55% 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 VIP Clothing Insiders?

The fact that there have been no VIP Clothing insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. With high insider ownership and encouraging transactions, it seems like VIP Clothing insiders think the business has merit. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing VIP Clothing. For instance, we've identified 4 warning signs for VIP Clothing (2 are potentially serious) you should be aware of.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

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, but not derivative transactions.

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