Insider Buyers At Nureca Recover Some Losses, But Still Down ₹12m

Some of the losses seen by insiders who purchased ₹27.2m worth of Nureca Limited (NSE:NURECA) shares over the past year were recovered after the stock increased by 24% over the past week. However, the purchase is proving to be a costly gamble, since losses made by insiders have totalled ₹12m since the time of purchase.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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Nureca Insider Transactions Over The Last Year

The Co-Founder Saurabh Goyal made the biggest insider purchase in the last 12 months. That single transaction was for ₹15m worth of shares at a price of ₹2,911 each. That means that an insider was happy to buy shares at above the current price of ₹289. It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

Nureca insiders may have bought shares in the last year, but they didn't sell any. Their average price was about ₹534. These transactions suggest that insiders have considered the current price attractive. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Check out our latest analysis for Nureca

Nureca 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 Nureca Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Nureca insiders own 66% of the company, currently worth about ₹1.9b based on the recent share price. 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 Does This Data Suggest About Nureca Insiders?

There haven't been any insider transactions in the last three months -- that doesn't mean much. However, our analysis of transactions over the last year is heartening. With high insider ownership and encouraging transactions, it seems like Nureca insiders think the business has merit. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Nureca. When we did our research, we found 3 warning signs for Nureca (1 is a bit unpleasant!) that we believe deserve your full attention.

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.

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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.