As D B Realty Limited (NSE:DBREALTY) gains 12%, insiders who bought last year may be wishing they had bet higher

D B Realty Limited (NSE:DBREALTY) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 12%, resulting in a ₹2.9b rise in the company's market capitalisation. As a result, their original purchase of ₹8.4m worth of stock is now worth ₹23m.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for D B Realty

D B Realty Insider Transactions Over The Last Year

There wasn't any very large single transaction over the last year, but we can still observe some trading.

Vinod Goenka bought 215.30k shares over the last 12 months at an average price of ₹38.80. 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!

D B Realty is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership of D B Realty

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. D B Realty insiders own about ₹8.3b worth of shares (which is 32% 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 Does This Data Suggest About D B Realty Insiders?

It doesn't really mean much that no insider has traded D B Realty shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. It would be great to see more insider buying, but overall it seems like D B Realty insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the 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 D B Realty (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, but not derivative transactions.

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