Cupid Insider Buyers Pleased With ₹19m Return On Investment

Insiders who purchased Cupid Limited (NSE:CUPID) shares in the past 12 months are unlikely to be deeply impacted by the stock's 10% decline over the past week. Even after accounting for the recent loss, the ₹160.8m worth of stock purchased by them is now worth ₹179.9m or in other words, their investment continues to give good returns.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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Cupid Insider Transactions Over The Last Year

The MD & Additional Executive Chairman Aditya Halwasiya made the biggest insider purchase in the last 12 months. That single transaction was for ₹127m worth of shares at a price of ₹86.72 each. We do like to see buying, but this purchase was made at well below the current price of ₹96.72. 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.

Aditya Halwasiya bought 1.86m shares over the last 12 months at an average price of ₹86.47. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

See our latest analysis for Cupid

Cupid 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.

Insider Ownership Of Cupid

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. Cupid insiders own 38% of the company, currently worth about ₹9.8b based on the recent share price. 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 Cupid Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Cupid shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. It would be great to see more insider buying, but overall it seems like Cupid insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. While it's good to be aware of 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. While conducting our analysis, we found that Cupid has 1 warning sign and it would be unwise to ignore it.

But note: Cupid may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.