We note that the Glenmark Pharmaceuticals Limited (NSE:GLENMARK) Independent Non-Executive Director, Sridhar Gorthi, recently sold ₹299k worth of stock for ₹536 per share. That might not be a huge sum but it was 100% of their personal holding, so we find it a little discouraging.
The Last 12 Months Of Insider Transactions At Glenmark Pharmaceuticals
The Chairman Glenn Saldanha made the biggest insider purchase in the last 12 months. That single transaction was for ₹5.0m worth of shares at a price of ₹513 each. So it's clear an insider wanted to buy, at around the current price, which is ₹517. That means they have been optimistic about the company in the past, though they may have changed their mind. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the Glenmark Pharmaceuticals insiders decided to buy shares at close to current prices.
Over the last year, we can see that insiders have bought 30.22k shares worth ₹18m. But insiders sold 559.00 shares worth ₹299k. In total, Glenmark Pharmaceuticals insiders bought more than they sold over the last year. The average buy price was around ₹590. I'd consider this a positive as it suggests insiders see value at around the current price. 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!
Glenmark Pharmaceuticals is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Glenmark Pharmaceuticals Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 3.1% of Glenmark Pharmaceuticals shares, worth about ₹4.5b. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About Glenmark Pharmaceuticals Insiders?
The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Glenmark Pharmaceuticals. That's what I like to see! Of course, the future is what matters most. So if you are interested in Glenmark Pharmaceuticals, you should check out this free report on analyst forecasts for the company.
But note: Glenmark Pharmaceuticals 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.
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.
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