Hemant Kataria Just Bought 6.2% More Shares In D.P. Wires Limited (NSE:DPWIRES)

Whilst it may not be a huge deal, we thought it was good to see that Hemant Kataria, who is a company insider, recently bought ₹3.0m worth of stock, for ₹80.40 per share. However, it only increased their shares held by 6.2%, and it wasn't a huge purchase by absolute value, either.

See our latest analysis for D.P. Wires

The Last 12 Months Of Insider Transactions At D.P. Wires

Notably, that recent purchase by Hemant Kataria is the biggest insider purchase of D.P. Wires shares that we've seen in the last year. That means that an insider was happy to buy shares at around the current price of ₹83.45. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. In this case we're pleased to report that the insider purchases were made at close to current prices.

D.P. Wires insiders may have bought shares in the last year, but they didn't sell any. Their average price was about ₹70.20. These transactions show that insiders have confidence to invest their own money in the stock, albeit at slightly below the recent price of ₹83.45. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

D.P. Wires is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership of D.P. Wires

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. D.P. Wires insiders own 68% of the company, currently worth about ₹773m 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 Do The D.P. Wires Insider Transactions Indicate?

It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about D.P. Wires. One for the watchlist, at least! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Be aware that D.P. Wires is showing 3 warning signs in our investment analysis, and 1 of those is a bit concerning...

But note: D.P. Wires 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, but not derivative transactions.

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