Despite Advait Energy Transitions' Pullback, Insiders Still Gained ₹629k
Insiders who purchased Advait Energy Transitions Limited (NSE:ADVAIT) shares in the past 12 months are unlikely to be deeply impacted by the stock's 12% decline over the past week. Reason being, despite the recent loss, insiders original purchase value of ₹6.01m is now worth ₹6.64m.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
The Last 12 Months Of Insider Transactions At Advait Energy Transitions
Over the last year, we can see that the biggest insider purchase was by Wholetime Director Rejal Sheth for ₹6.0m worth of shares, at about ₹1,510 per share. That means that an insider was happy to buy shares at around the current price of ₹1,668. That means they have been optimistic about the company in the past, though they may have changed their mind. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. In this case we're pleased to report that the insider bought shares at close to current prices. Rejal Sheth 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. By clicking on the graph below, you can see the precise details of each insider transaction!
Check out our latest analysis for Advait Energy Transitions
Advait Energy Transitions is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.
Does Advait Energy Transitions 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. I reckon it's a good sign if insiders own a significant number of shares in the company. Advait Energy Transitions insiders own 72% of the company, currently worth about ₹13b based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
What Might The Insider Transactions At Advait Energy Transitions Tell Us?
It doesn't really mean much that no insider has traded Advait Energy Transitions shares in the last quarter. However, our analysis of transactions over the last year is heartening. It would be great to see more insider buying, but overall it seems like Advait Energy Transitions insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. Along with insider transactions, I recommend checking if Advait Energy Transitions is growing revenue. This free chart of historic revenue and earnings should make that easy.
But note: Advait Energy Transitions 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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