Best Agrolife Insider Confidence Rewarded, Stock Hits ₹12b Market Cap

Insiders who bought Best Agrolife Limited (NSE:BESTAGRO) stock in the last 12 months were richly rewarded last week. The company's market value increased by ₹1.4b as a result of the stock's 13% gain over the same period. In other words, the original ₹27.4m purchase is now worth ₹51.8m.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

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The Last 12 Months Of Insider Transactions At Best Agrolife

The MD & Director Vimal Alawadhi made the biggest insider purchase in the last 12 months. That single transaction was for ₹11m worth of shares at a price of ₹276 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of ₹512. 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.

While Best Agrolife insiders bought shares during the last year, they didn't sell. 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!

View our latest analysis for Best Agrolife

Best Agrolife 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 Best Agrolife

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Best Agrolife insiders own about ₹7.8b worth of shares (which is 65% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Best Agrolife Tell Us?

It doesn't really mean much that no insider has traded Best Agrolife shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. It would be great to see more insider buying, but overall it seems like Best Agrolife insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Best Agrolife. When we did our research, we found 2 warning signs for Best Agrolife (1 makes us a bit uncomfortable!) that we believe deserve your full attention.

Of course Best Agrolife 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.