Insider Buying: The Gandhi Special Tubes Limited (NSE:GANDHITUBE) Non Executive & Independent Director Just Bought 200% More Shares

Even if it's not a huge purchase, we think it was good to see that Dharmen Shah, the Non Executive & Independent Director of Gandhi Special Tubes Limited (NSE:GANDHITUBE) recently shelled out ₹454k to buy stock, at ₹227 per share. Even though that isn't a massive buy, it did increase their holding by 200%, which is arguably a good sign.

View our latest analysis for Gandhi Special Tubes

Gandhi Special Tubes Insider Transactions Over The Last Year

Notably, that recent purchase by Dharmen Shah is the biggest insider purchase of Gandhi Special Tubes shares that we've seen in the last year. So it's clear an insider wanted to buy, even at a higher price than the current share price (being ₹220). Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

While Gandhi Special Tubes 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. By clicking on the graph below, you can see the precise details of each insider transaction!

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Gandhi Special Tubes insiders own 70% of the company, currently worth about ₹2.0b based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About Gandhi Special Tubes Insiders?

It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Gandhi Special Tubes. That's what I like to see! While we like knowing 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. In terms of investment risks, we've identified 2 warning signs with Gandhi Special Tubes and understanding these should be part of your investment process.

Of course Gandhi Special Tubes 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, but not derivative transactions.

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This article by Simply Wall St is general in nature. 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.
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