Aman Baid Bought 7.4% More Shares In Baid Finserv

Whilst it may not be a huge deal, we thought it was good to see that the Baid Finserv Limited (NSE:BAIDFIN) Whole Time Director, Aman Baid, recently bought ₹5.8m worth of stock, for ₹16.70 per share. However, it only increased their shares held by 7.4%, and it wasn't a huge purchase by absolute value, either.

Check out our latest analysis for Baid Finserv

Baid Finserv Insider Transactions Over The Last Year

In fact, the recent purchase by Aman Baid was the biggest purchase of Baid Finserv shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, at around the current price, which is ₹16.82. That means they have been optimistic about the company in the past, though they may have changed their mind. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for Baid Finserv share holders is that insiders were buying at near the current price.

Baid Finserv insiders may have bought shares in the last year, but they didn't sell any. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company 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. It appears that Baid Finserv insiders own 18% of the company, worth about ₹361m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The Baid Finserv Insider Transactions Indicate?

The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Baid Finserv. Nice! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Baid Finserv. Case in point: We've spotted 4 warning signs for Baid Finserv you should be aware of, and 1 of them is a bit concerning.

But note: Baid Finserv may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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 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.