Despite Elin Electronics' Pullback, Insiders Still Gained ₹2.3m

Insiders who bought Elin Electronics Limited (NSE:ELIN) in the last 12 months may probably not pay attention to the stock's recent 11% drop. After taking the recent loss into consideration, the ₹16.6m worth of stock they bought is now worth ₹18.9m, indicating that their investment yielded a positive return.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for Elin Electronics

The Last 12 Months Of Insider Transactions At Elin Electronics

In the last twelve months, the biggest single purchase by an insider was when insider Namrata Sethia bought ₹6.5m worth of shares at a price of ₹199 per share. That means that an insider was happy to buy shares at above the current price of ₹181. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

In the last twelve months Elin Electronics insiders were buying shares, but not selling. The average buy price was around ₹159. It is certainly positive to see that insiders have invested their own money in the company. But we must note that the investments were made at well below today's share price. 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!

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Does Elin Electronics Boast High Insider Ownership?

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. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Elin Electronics insiders own 53% of the company, worth about ₹4.8b. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About Elin Electronics Insiders?

There haven't been any insider transactions in the last three months -- that doesn't mean much. But insiders have shown more of an appetite for the stock, over the last year. Judging from their transactions, and high insider ownership, Elin Electronics insiders feel good about the company's future. Of course, the future is what matters most. So if you are interested in Elin Electronics, you should check out this free report on analyst forecasts for the company.

Of course Elin Electronics 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 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.