The Non-Executive Independent Director of D. P. Abhushan Limited (NSE:DPABHUSHAN), Deepak Gadia, Just Bought A Few More Shares

By
Simply Wall St
Published
November 17, 2021
NSEI:DPABHUSHAN
Source: Shutterstock

Even if it's not a huge purchase, we think it was good to see that Deepak Gadia, the Non-Executive Independent Director of D. P. Abhushan Limited (NSE:DPABHUSHAN) recently shelled out ₹2.2m to buy stock, at ₹292 per share. Nevertheless, it only increased their shareholding by a minuscule percentage, and it wasn't a massive purchase by absolute value, either.

Check out our latest analysis for D. P. Abhushan

The Last 12 Months Of Insider Transactions At D. P. Abhushan

Notably, that recent purchase by Deepak Gadia is the biggest insider purchase of D. P. Abhushan shares that we've seen in the last year. So it's clear an insider wanted to buy, even at a higher price than the current share price (being ₹287). It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Deepak Gadia was the only individual insider to buy during the last year.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

insider-trading-volume
NSEI:DPABHUSHAN Insider Trading Volume November 18th 2021

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that D. P. Abhushan insiders own 83% of the company, worth about ₹5.3b. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At D. P. Abhushan Tell Us?

The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest D. P. Abhushan 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. Our analysis shows 4 warning signs for D. P. Abhushan (1 is significant!) and we strongly recommend you look at them before investing.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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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