Manohar Ramesh Khiatani Spends S$513k On CapitaLand India Trust Stock

Potential CapitaLand India Trust (SGX:CY6U) shareholders may wish to note that the Chairman of the Board of CapitaLand India Trust Management Pte. Ltd., Manohar Ramesh Khiatani, recently bought S$513k worth of stock, paying S$1.03 for each share. However, it only increased shareholding by a small percentage, and it wasn't a huge purchase by absolute value, either.

See our latest analysis for CapitaLand India Trust

The Last 12 Months Of Insider Transactions At CapitaLand India Trust

In fact, the recent purchase by Manohar Ramesh Khiatani was the biggest purchase of CapitaLand India Trust shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of S$1.03 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the CapitaLand India Trust insider decided to buy shares at close to current prices. The only individual insider to buy over the last year was Manohar Ramesh Khiatani.

The chart below shows insider transactions (by companies and individuals) over the last year. 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 CapitaLand India Trust Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Our data suggests CapitaLand India Trust insiders own 0.4% of the company, worth about S$5.1m. However, it's possible that insiders might have an indirect interest through a more complex structure. We prefer to see high levels of insider ownership.

What Might The Insider Transactions At CapitaLand India Trust Tell Us?

It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that CapitaLand India Trust insiders are reasonably well aligned, and optimistic for the future. 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 4 warning signs for CapitaLand India Trust (of which 2 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 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.