Bullish Ami Organics Insiders Loaded Up On ₹420.0m Of Stock

In the last year, multiple insiders have substantially increased their holdings of Ami Organics Limited (NSE:AMIORG) stock, indicating that insiders' optimism about the company's prospects has increased.

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.

Check out our latest analysis for Ami Organics

The Last 12 Months Of Insider Transactions At Ami Organics

Over the last year, we can see that the biggest insider purchase was by Executive Chairman & MD Nareshkumar Patel for ₹320m worth of shares, at about ₹1,164 per share. Even though the purchase was made at a significantly lower price than the recent price (₹2,260), we still think insider buying is a positive. 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.

In the last twelve months insiders purchased 360.91k shares for ₹420m. But insiders sold 25.00k shares worth ₹39m. In the last twelve months there was more buying than selling by Ami Organics insiders. 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!

Ami Organics is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Insiders At Ami Organics Have Sold Stock Recently

Over the last three months, we've seen significant insider selling at Ami Organics. In total, insider M. Koladia sold ₹39m worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain.

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Ami Organics insiders own about ₹41b worth of shares (which is 44% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Ami Organics Tell Us?

An insider hasn't bought Ami Organics stock in the last three months, but there was some selling. On the other hand, the insider transactions over the last year are encouraging. On top of that, insiders own a significant portion of the company. So the recent selling doesn't worry us. 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. Our analysis shows 3 warning signs for Ami Organics (1 is potentially serious!) and we strongly recommend you look at these before investing.

Of course Ami Organics 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.