Who Has Been Buying Apollo Hospitals Enterprise Limited (NSE:APOLLOHOSP) Shares?

We often see insiders buying up shares in companies that perform well over the long term. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So before you buy or sell Apollo Hospitals Enterprise Limited (NSE:APOLLOHOSP), you may well want to know whether insiders have been buying or selling.

What Is Insider Buying?

It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, such insiders must disclose their trading activities, and not trade on inside information.

We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year'.

Check out our latest analysis for Apollo Hospitals Enterprise

Apollo Hospitals Enterprise Insider Transactions Over The Last Year

The insider Karthik Anand made the biggest insider purchase in the last 12 months. That single transaction was for ₹6.9m worth of shares at a price of ₹1,109 each. We do like to see buying, but this purchase was made at well below the current price of ₹2,360. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

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!

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

Insider Ownership of Apollo Hospitals Enterprise

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Apollo Hospitals Enterprise insiders own about ₹37b worth of shares (which is 11% 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.

So What Do The Apollo Hospitals Enterprise Insider Transactions Indicate?

The fact that there have been no Apollo Hospitals Enterprise insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. With high insider ownership and encouraging transactions, it seems like Apollo Hospitals Enterprise insiders think the business has merit. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Case in point: We've spotted 3 warning signs for Apollo Hospitals Enterprise you should be aware of.

Of course Apollo Hospitals Enterprise 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, 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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