The MD & Director of NCL Industries Limited (NSE:NCLIND), Ravi Kalidindi, Just Bought 1.9% More Shares

By
Simply Wall St
Published
February 17, 2022
NSEI:NCLIND
Source: Shutterstock

Potential NCL Industries Limited (NSE:NCLIND) shareholders may wish to note that the MD & Director, Ravi Kalidindi, recently bought ₹8.0m worth of stock, paying ₹182 for each share. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 1.9%.

View our latest analysis for NCL Industries

The Last 12 Months Of Insider Transactions At NCL Industries

Notably, that recent purchase by MD & Director Ravi Kalidindi was not the only time they bought NCL Industries shares this year. They previously made an even bigger purchase of ₹12m worth of shares at a price of ₹215 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being ₹179). Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. 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.

In the last twelve months insiders purchased 475.49k shares for ₹91m. But they sold 22.60k shares for ₹5.3m. In the last twelve months there was more buying than selling by NCL Industries insiders. Their average price was about ₹191. These transactions suggest that insiders have considered the current 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!

insider-trading-volume
NSEI:NCLIND Insider Trading Volume February 17th 2022

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).

Does NCL Industries Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that NCL Industries insiders own 49% of the company, worth about ₹4.0b. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At NCL Industries Tell Us?

The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest NCL Industries insiders are well aligned, and quite possibly think the share price is too low. 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. Every company has risks, and we've spotted 3 warning signs for NCL Industries you should know about.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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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