Stock Analysis

K. Nagaraju of Aurobindo Pharma Limited (NSE:AUROPHARMA) Just Spent ₹3.2m On Shares

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Even if it's not a huge purchase, we think it was good to see that K. Nagaraju, a Aurobindo Pharma Limited (NSE:AUROPHARMA) insider, recently shelled out ₹3.2m to buy stock, at ₹462 per share. Even though that isn't a massive buy, it did increase their holding by 90%, which is arguably a good sign.

Check out our latest analysis for Aurobindo Pharma

Aurobindo Pharma Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the insider, Puvvala Yugandhar, for ₹11m worth of shares, at about ₹550 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of ₹458. So it is hard to draw any strong conclusion from it. Puvvala Yugandhar was the only individual insider to sell over the last year.

Puvvala Yugandhar divested 25.00k shares over the last 12 months at an average price of ₹550. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

NSEI:AUROPHARMA Insider Trading Volume March 16th 2023

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Insider Ownership Of Aurobindo Pharma

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Aurobindo Pharma insiders own 15% of the company, currently worth about ₹41b based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The Aurobindo Pharma Insider Transactions Indicate?

It's certainly positive to see the recent insider purchase. But we can't say the same for the transactions over the last 12 months. The high levels of insider ownership, and the recent buying by an insider suggests they are well aligned and optimistic. 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. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of Aurobindo Pharma.

Of course Aurobindo Pharma 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, but not derivative transactions.

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