Trade Alert: The Founder Of Dhani Services Limited (NSE:DHANI), Sameer Gehlaut, Has Just Spent ₹718m Buying 8.6% More Shares

By
Simply Wall St
Published
March 19, 2021
NSEI:DHANI
Source: Shutterstock

Dhani Services Limited (NSE:DHANI) shareholders (or potential shareholders) will be happy to see that the Founder, Sameer Gehlaut, recently bought a whopping ₹718m worth of stock, at a price of ₹266. There's no denying a buy of that magnitude suggests conviction in a brighter future, although we do note that proportionally it only increased their holding by 8.6%.

Check out our latest analysis for Dhani Services

The Last 12 Months Of Insider Transactions At Dhani Services

Notably, that recent purchase by Sameer Gehlaut is the biggest insider purchase of Dhani Services shares that we've seen in the last year. That implies that an insider found the current price of ₹275 per share to be enticing. 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 do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. In this case we're pleased to report that the insider bought shares at close to current prices. The only individual insider to buy over the last year was Sameer Gehlaut.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
NSEI:DHANI Insider Trading Volume March 20th 2021

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership

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. Dhani Services insiders own about ₹17b worth of shares (which is 12% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Dhani Services Tell Us?

It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. 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 Dhani Services. One for the watchlist, at least! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Dhani Services. To help with this, we've discovered 5 warning signs (1 is a bit concerning!) that you ought to be aware of before buying any shares in Dhani Services.

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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This article by Simply Wall St is general in nature. 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.
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