Non-Executive Director Ashven Datla Just Bought 1.1% More Shares In NCL Industries Limited (NSE:NCLIND)

Whilst it may not be a huge deal, we thought it was good to see that the NCL Industries Limited (NSE:NCLIND) Non-Executive Director, Ashven Datla, recently bought ₹3.0m worth of stock, for ₹165 per share. Although the purchase is not a big one, increasing their shareholding by only 1.1%, it can be interpreted as a good sign.

Check out our latest analysis for NCL Industries

The Last 12 Months Of Insider Transactions At NCL Industries

In fact, the recent purchase by Non-Executive Director Ashven Datla was not their only acquisition of NCL Industries shares this year. Earlier in the year, they paid ₹103 per share in a ₹14m purchase. Even though the purchase was made at a significantly lower price than the recent price (₹167), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

In the last twelve months insiders purchased 1.10m shares for ₹109m. But they sold 5.00k shares for ₹582k. In the last twelve months there was more buying than selling by NCL Industries insiders. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

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

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. NCL Industries insiders own 49% of the company, currently worth about ₹3.7b 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.

What Might The Insider Transactions At NCL Industries Tell Us?

The recent insider purchases are heartening. 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 NCL Industries. Looks promising! 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 NCL Industries has 1 warning sign and it would be unwise to ignore this.

But note: NCL Industries 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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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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