GSS Infotech Limited (NSE:GSS) Insiders Increased Their Holdings

We often see insiders buying up shares in companies that perform well over the long term. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So shareholders might well want to know whether insiders have been buying or selling shares in GSS Infotech Limited (NSE:GSS).

Do Insider Transactions Matter?

It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, most countries require that the company discloses such transactions to the market.

We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.

Check out our latest analysis for GSS Infotech

The Last 12 Months Of Insider Transactions At GSS Infotech

Over the last year, we can see that the biggest insider purchase was by Co-Founder Bhargav Marepally for ₹17m worth of shares, at about ₹22.23 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of ₹52.65. 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.

Bhargav Marepally bought a total of 868.34k shares over the year at an average price of ₹22.17. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

GSS Infotech is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership of GSS Infotech

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. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that GSS Infotech insiders own 41% of the company, worth about ₹363m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The GSS Infotech Insider Transactions Indicate?

It doesn't really mean much that no insider has traded GSS Infotech shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Judging from their transactions, and high insider ownership, GSS Infotech insiders feel good about the company's future. While we like knowing 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. Case in point: We've spotted 3 warning signs for GSS Infotech you should be aware of.

Of course GSS Infotech may not be the best stock to buy. So you may wish to see this free collection of high quality 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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