Insider Spends ₹21m Buying More Shares In GRM Overseas

Potential GRM Overseas Limited (NSE:GRMOVER) shareholders may wish to note that the MD & Chairman, Atul Garg, recently bought ₹21m worth of stock, paying ₹37.50 for each share. Although the purchase only increased their holding by 3.8%, it is still a solid purchase in our view.

See our latest analysis for GRM Overseas

The Last 12 Months Of Insider Transactions At GRM Overseas

Notably, that recent purchase by Atul Garg is the biggest insider purchase of GRM Overseas shares that we've seen in the last year. We do like to see buying, but this purchase was made at well below the current price of ₹231. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

In the last twelve months GRM Overseas insiders were buying shares, but not selling. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

GRM Overseas is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Does GRM Overseas Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that GRM Overseas insiders own 74% of the company, worth about ₹10b. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The GRM Overseas Insider Transactions Indicate?

It is good to see recent purchasing. And the longer term insider transactions also give us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about GRM Overseas. Nice! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing GRM Overseas. For example, GRM Overseas has 2 warning signs (and 1 which makes us a bit uncomfortable) we think you should know about.

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 of direct interests only, but not derivative transactions or indirect interests.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.