A ₹8.1b Market Cap Boost Pleasing ToTARC Insiders

Last week, TARC Limited (NSE:TARC) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 21% last week, resulting in a ₹8.1b increase in the company's market worth, implying a 22% gain on their initial purchase. As a result, their original purchase of ₹57.6m worth of stock is now worth ₹70.3m.

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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TARC Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Whole Time Director & Chief Brand Officer Muskaan Sarin for ₹25m worth of shares, at about ₹124 per share. We do like to see buying, but this purchase was made at well below the current price of ₹156. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

TARC insiders may have bought shares in the last year, but they didn't sell any. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

See our latest analysis for TARC

TARC is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership Of TARC

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. TARC insiders own about ₹31b worth of shares (which is 66% of the company). 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 Do The TARC Insider Transactions Indicate?

The fact that there have been no TARC insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. With high insider ownership and encouraging transactions, it seems like TARC 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 - TARC has 1 warning sign we think you should be aware of.

But note: TARC 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.