We’ve lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So before you buy or sell Eros International Media Limited (NSE:EROSMEDIA), you may well want to know whether insiders have been buying or selling.
Do Insider Transactions Matter?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, such insiders must disclose their trading activities, and not trade on inside information.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But equally, we would consider it foolish to ignore insider transactions altogether. As Peter Lynch said, ‘insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.’
Eros International Media Insider Transactions Over The Last Year
There wasn’t any very large single transaction over the last year, but we can still observe some trading.
In the last twelve months insiders netted ₹4.0m for 29463 shares sold. Eros International Media insiders didn’t buy any shares over the last year. The chart below shows insider transactions (by individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).
Does Eros International Media Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Our data suggests Eros International Media insiders own 1.6% of the company, worth about ₹117m. We consider this fairly low insider ownership.
What Might The Insider Transactions At Eros International Media Tell Us?
It doesn’t really mean much that no insider has traded Eros International Media shares in the last quarter. While we feel good about high insider ownership of Eros International Media, we can’t say the same about the selling of shares. Along with insider transactions, I recommend checking if Eros International Media is growing revenue. This free chart of historic revenue and earnings should make that easy.
Of course Eros International Media may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
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If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.