Chairman & MD Vijay Batra Just Bought A Handful Of Shares In Beta Drugs Limited (NSE:BETA)

Whilst it may not be a huge deal, we thought it was good to see that the Beta Drugs Limited (NSE:BETA) Chairman & MD, Vijay Batra, recently bought ₹827k worth of stock, for ₹129 per share. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.

View our latest analysis for Beta Drugs

The Last 12 Months Of Insider Transactions At Beta Drugs

In fact, the recent purchase by Chairman & MD Vijay Batra was not their only acquisition of Beta Drugs shares this year. They previously made an even bigger purchase of ₹2.1m worth of shares at a price of ₹47.96 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of ₹121. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Vijay Batra purchased 49.60k shares over the year. The average price per share was ₹58.44. 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!

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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Beta Drugs insiders own 87% of the company, currently worth about ₹911m 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 Does This Data Suggest About Beta Drugs Insiders?

It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest Beta Drugs insiders are well aligned, and quite possibly think the share price is too low. One for the watchlist, at least! 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. At Simply Wall St, we've found that Beta Drugs has 3 warning signs (1 is a bit concerning!) that deserve your attention before going any further with your analysis.

Of course Beta Drugs 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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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. 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.
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