This Deepak Nitrite Insider Increased Their Holding By 37% Last Year

From what we can see, insiders were net buyers in Deepak Nitrite Limited's (NSE:DEEPAKNTR ) during the past 12 months. That is, insiders acquired the stock in greater numbers than they sold it.

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.

See our latest analysis for Deepak Nitrite

Deepak Nitrite Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by insider Ila Mehta for ₹366m worth of shares, at about ₹2,504 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of ₹2,799. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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

Does Deepak Nitrite Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Deepak Nitrite insiders own 17% of the company, currently worth about ₹66b 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 Deepak Nitrite Insiders?

The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Deepak Nitrite. That's what I like to see! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Deepak Nitrite. For example - Deepak Nitrite has 1 warning sign we think you should be aware of.

But note: Deepak Nitrite 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com