With Baheti Recycling Industries Up 22%, Insider Buyers Count Their Returns

Baheti Recycling Industries Limited (NSE:BAHETI) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 22%, resulting in a ₹871m rise in the company's market capitalisation, translating to a gain of 54% on their initial investment. As a result, their original purchase of ₹18.3m worth of stock is now worth ₹28.1m.

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.

View our latest analysis for Baheti Recycling Industries

Baheti Recycling Industries Insider Transactions Over The Last Year

The Chairman Shankerlal Shah made the biggest insider purchase in the last 12 months. That single transaction was for ₹18m worth of shares at a price of ₹304 each. We do like to see buying, but this purchase was made at well below the current price of ₹469. 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.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Baheti Recycling Industries is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Insider Ownership Of Baheti Recycling Industries

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Baheti Recycling Industries insiders own about ₹3.8b worth of shares (which is 79% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Baheti Recycling Industries Tell Us?

The fact that there have been no Baheti Recycling Industries insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. Judging from their transactions, and high insider ownership, Baheti Recycling Industries insiders feel good about the company's future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To that end, you should learn about the 4 warning signs we've spotted with Baheti Recycling Industries (including 2 which are concerning).

Of course Baheti Recycling Industries 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.