Venus Pipes and Tubes Insider Buyers Net ₹3.2m Despite 13% Stock Decline

Insiders who purchased Venus Pipes and Tubes Limited (NSE:VENUSPIPES) shares in the past 12 months are unlikely to be deeply impacted by the stock's 13% decline over the past week. After taking the recent loss into consideration, the ₹14.2m worth of stock they bought is now worth ₹17.3m, indicating that their investment yielded a positive return.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for Venus Pipes and Tubes

Venus Pipes and Tubes Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Whole-Time Director Dhruv Patel for ₹7.1m worth of shares, at about ₹1,419 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of ₹1,734. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

While Venus Pipes and 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. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Insider Ownership Of Venus Pipes and Tubes

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. It's great to see that Venus Pipes and Tubes insiders own 58% of the company, worth about ₹20b. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About Venus Pipes and Tubes Insiders?

The fact that there have been no Venus Pipes and Tubes insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. With high insider ownership and encouraging transactions, it seems like Venus Pipes and Tubes insiders think the business has merit. Of course, the future is what matters most. So if you are interested in Venus Pipes and Tubes, you should check out this free report on analyst forecasts for the company.

Of course Venus Pipes and 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 of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.