Nectar Lifesciences Insiders Recover Some Losses, Which Stand At ₹11m

Insiders who bought ₹17.7m worth of Nectar Lifesciences Limited (NSE:NECLIFE) stock in the last year have seen some of their losses recouped as the stock gained 20% last week. However, the purchase is proving to be a costly gamble, since losses made by insiders have totalled ₹11m since the time of purchase.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

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Nectar Lifesciences Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when insider Raman Goyal bought ₹18m worth of shares at a price of ₹44.37 per share. That means that even when the share price was higher than ₹15.76 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Raman Goyal was the only individual insider to buy shares in the last twelve months.

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!

View our latest analysis for Nectar Lifesciences

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

Does Nectar Lifesciences Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company 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. Nectar Lifesciences insiders own 49% of the company, currently worth about ₹1.7b 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 Does This Data Suggest About Nectar Lifesciences Insiders?

It doesn't really mean much that no insider has traded Nectar Lifesciences shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. With high insider ownership and encouraging transactions, it seems like Nectar Lifesciences insiders think the business has merit. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. For example, Nectar Lifesciences has 2 warning signs (and 1 which doesn't sit too well with us) we think you should know about.

But note: Nectar Lifesciences 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 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.