Even if it's not a huge purchase, we think it was good to see that Raghuram Shetty, the MD & Director of Heranba Industries Limited (NSE:HERANBA) recently shelled out ₹561k to buy stock, at ₹561 per share. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.
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Heranba Industries Insider Transactions Over The Last Year
MD & Director Raghuram Shetty previously made an even bigger purchase of ₹6.3m worth of shares at a price of ₹568 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being ₹566). 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. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. The only individual insider to buy over the last year was Raghuram Shetty.
Raghuram Shetty bought 25.00k shares over the last 12 months at an average price of ₹566. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Does Heranba Industries Boast High Insider Ownership?
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. Heranba Industries insiders own 76% of the company, currently worth about ₹17b 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 Do The Heranba Industries Insider Transactions Indicate?
It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Heranba Industries. Nice! 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. While conducting our analysis, we found that Heranba Industries has 1 warning sign and it would be unwise to ignore it.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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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