Insider Buying: The Arvind Fashions Limited (NSE:ARVINDFASN) Chief Financial Officer Just Bought 37,500% More Shares

Whilst it may not be a huge deal, we thought it was good to see that the Arvind Fashions Limited (NSE:ARVINDFASN) Chief Financial Officer, Pramod Gupta, recently bought ₹1.1m worth of stock, for ₹144 per share. While that isn't the hugest buy, it actually boosted their shareholding by 37,500%, which is good to see.

View our latest analysis for Arvind Fashions

Arvind Fashions Insider Transactions Over The Last Year

While there weren't any large insider transactions in the last twelve months, it's still worth looking at the trading.

Happily, we note that in the last year insiders paid ₹4.4m for 32.50k shares. But they sold 32.37k shares for ₹2.5m. Overall, Arvind Fashions insiders were net buyers during the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

Arvind Fashions 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 Arvind Fashions

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. Insiders own 8.0% of Arvind Fashions shares, worth about ₹1.3b. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Arvind Fashions Tell Us?

It is good to see recent purchasing. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest Arvind Fashions insiders are well aligned, and quite possibly think the share price is too low. Nice! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Every company has risks, and we've spotted 3 warning signs for Arvind Fashions (of which 2 can't be ignored!) you should know about.

But note: Arvind Fashions 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.

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This article by Simply Wall St is general in nature. 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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