Nectar Lifesciences Insiders Recover Some Losses, Which Stand At ₹8.2m

Insiders who bought ₹17.7m worth of Nectar Lifesciences Limited (NSE:NECLIFE) stock in the last year recovered part of their losses as the stock rose by 10% last week. However, total losses seen by insiders are still ₹8.2m since the time of purchase.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Our free stock report includes 3 warning signs investors should be aware of before investing in Nectar Lifesciences. Read for free now.

The Last 12 Months Of Insider Transactions At Nectar Lifesciences

Over the last year, we can see that the biggest insider purchase was by insider Raman Goyal for ₹18m worth of shares, at about ₹44.37 per share. That means that an insider was happy to buy shares at above the current price of ₹23.92. It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. The only individual insider to buy over the last year was Raman Goyal.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that Nectar Lifesciences insiders own 46% of the company, worth about ₹2.5b. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About Nectar Lifesciences Insiders?

There haven't been any insider transactions in the last three months -- that doesn't mean much. However, our analysis of transactions over the last year is heartening. Judging from their transactions, and high insider ownership, Nectar Lifesciences insiders feel good about the company's future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 3 warning signs for Nectar Lifesciences (of which 1 can't be ignored!) you should know about.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.