An Insider Of Zydus Wellness Picks Up 1.5% More Stock

Those following along with Zydus Wellness Limited (NSE:ZYDUSWELL) will no doubt be intrigued by the recent purchase of shares by insider Pankaj Patel, who spent a stonking ₹175m on stock at an average price of ₹1,595. 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 1.5%.

View our latest analysis for Zydus Wellness

The Last 12 Months Of Insider Transactions At Zydus Wellness

Notably, that recent purchase by insider Pankaj Patel was not the only time they bought Zydus Wellness shares this year. They previously made an even bigger purchase of ₹769m worth of shares at a price of ₹1,503 per share. That means that an insider was happy to buy shares at around the current price of ₹1,594. Of course they may have changed their mind. But this suggests they are optimistic. 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. In this case we're pleased to report that the insider bought shares at close to current prices. Pankaj Patel was the only individual insider to buy shares in the last twelve months.

Pankaj Patel bought a total of 1.37m shares over the year at an average price of ₹1,508. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

Zydus Wellness is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

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. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Zydus Wellness insiders own 12% of the company, worth about ₹13b. 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 Zydus Wellness Insiders?

It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest Zydus Wellness insiders are well aligned, and quite possibly think the share price is too low. That's what I like to see! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Zydus Wellness. You'd be interested to know, that we found 1 warning sign for Zydus Wellness and we suggest you have a look.

Of course Zydus Wellness may not be the best stock to buy. So you may wish to see this free collection of high quality 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.