Who Has Been Buying Asahi India Glass Limited (NSE:ASAHIINDIA) Shares?
We’ve lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So we’ll take a look at whether insiders have been buying or selling shares in Asahi India Glass Limited (NSE:ASAHIINDIA).
Do Insider Transactions Matter?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. 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 Harvard University study found that ‘insider purchases earn abnormal returns of more than 6% per year.’
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The Last 12 Months Of Insider Transactions At Asahi India Glass
Over the last year, we can see that the biggest insider purchase was by MD, CEO & Executive Director Sanjay Labroo for ₹34m worth of shares, at about ₹337 per share. So it’s clear an insider wanted to buy, even at a higher price. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company’s future. It’s not at all bad to see insiders buy shares at or above current prices.
Over the last year, we can see that insiders have bought 180.49k shares worth ₹62m. But insiders sold 96.13k shares worth ₹34m. Overall, Asahi India Glass insiders were net buyers last year. Their average price was about ₹344. I’d consider this a positive as it suggests insiders see value at around the current price, which is ₹255. You can see the insider transactions (by 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!
Asahi India Glass is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insiders at Asahi India Glass Have Bought Stock Recently
There was some insider buying at Asahi India Glass over the last quarter. Bharat Kapoor purchased ₹3.0m worth of shares in that period. It’s great to see that insiders are only buying, not selling. But in this case the amount purchased means the recent transaction may not be very meaningful on its own.
Does Asahi India Glass Boast High 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Asahi India Glass insiders own about ₹20b worth of shares (which is 32% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Do The Asahi India Glass Insider Transactions Indicate?
It is good to see recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Asahi India Glass. Looks promising! Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Asahi India Glass.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
