Nupur Recyclers Insiders May Regret Not Buying More, Market Cap Hits ₹8.0b
Insiders who bought Nupur Recyclers Limited (NSE:NRL) stock in the last 12 months were richly rewarded last week. The company's market value increased by ₹750m as a result of the stock's 10% gain over the same period. As a result, their original purchase of ₹6.99m worth of stock is now worth ₹11.5m.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
The Last 12 Months Of Insider Transactions At Nupur Recyclers
The Non-Executive Woman Director Nupur Gupta made the biggest insider purchase in the last 12 months. That single transaction was for ₹7.0m worth of shares at a price of ₹70.03 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of ₹115. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
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!
Check out our latest analysis for Nupur Recyclers
Nupur Recyclers is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Insider Ownership
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Nupur Recyclers insiders own 72% of the company, worth about ₹5.8b. 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 Do The Nupur Recyclers Insider Transactions Indicate?
The fact that there have been no Nupur Recyclers insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. Judging from their transactions, and high insider ownership, Nupur Recyclers insiders feel good about the company's future. While it's good to be aware of 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. To that end, you should learn about the 2 warning signs we've spotted with Nupur Recyclers (including 1 which doesn't sit too well with us).
But note: Nupur Recyclers 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 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.