Insiders purchases in Touchwood Entertainment Limited (NSE:TOUCHWOOD) last year yet to pay off, remain down ₹260k despite recent gains

Insiders who bought ₹3.0m worth of Touchwood Entertainment Limited (NSE:TOUCHWOOD) stock in the last year recovered part of their losses as the stock rose by 12% last week. The purchase, however, has proven to be a pricey bet, with losses currently totalling ₹260k.

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

Our analysis indicates that TOUCHWOOD is potentially overvalued!

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.

Manjit Singh purchased 23.72k shares over the year. The average price per share was ₹127. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Touchwood Entertainment is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Touchwood Entertainment insiders own 82% of the company, currently worth about ₹971m based on the recent share price. 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 Do The Touchwood Entertainment Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Touchwood Entertainment shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. Judging from their transactions, and high insider ownership, Touchwood Entertainment insiders feel good about the company's future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. While conducting our analysis, we found that Touchwood Entertainment has 2 warning signs and it would be unwise to ignore them.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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, 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.