Despite Touchwood Entertainment Limited's recent decline, insiders have made a around ₹121k profit after buying earlier this year.

Insiders who bought Touchwood Entertainment Limited (NSE:TOUCHWOOD) in the last 12 months may probably not pay attention to the stock's recent 17% drop. After accounting for the recent loss, the ₹110k worth of shares they purchased is now worth ₹231k, suggesting a good return on their investment.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for Touchwood Entertainment

The Last 12 Months Of Insider Transactions At Touchwood Entertainment

While no particular insider transaction stood out, we can still look at the overall trading.

The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

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.

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. I reckon it's a good sign if insiders own a significant number of shares in the company. Touchwood Entertainment insiders own about ₹1.3b worth of shares (which is 82% of the company). 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 Touchwood Entertainment Tell Us?

The fact that there have been no Touchwood Entertainment 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 Touchwood Entertainment insiders think the business has merit. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. While conducting our analysis, we found that Touchwood Entertainment has 4 warning signs and it would be unwise to ignore these.

But note: Touchwood Entertainment 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. 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.