Khandwala Securities Limited (NSE: KHANDSE) Insiders who bought stocks in the past year were rewarded handsomely last week. The stock rose 10%, resulting in a € 20 million increase in the company’s market capitalization. As a result, their initial purchase of shares worth 120,000 is now worth 154,000.
While insider trading is not the most important thing when it comes to investing for the long term, we would consider it foolish to ignore insider trading altogether.
Check out our latest review for Khandwala Securities
The last 12 months of insider trading at Khandwala Securities
While no particular insider trades stood out, we can still look at all trades.
Paresh Khandwala bought a total of 8.62,000 shares during the year at an average price of 13.94. You can see insider trading (by companies and individuals) over the past year represented in the graph below. If you click on the chart, you can see all of the individual trades including the stock price, individual and date!
There are many other companies in which insiders buy shares. You probably do not want to miss it free list of growing companies that insiders are buying.
Does Khandwala Securities boast a high insider participation?
For an ordinary shareholder, it is worth checking out how many shares are owned by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will have an incentive to build the business for the long term. Insiders of Khandwala Securities own around 95 million yen of shares (or 45% of the company). I like to see this level of insider ownership because it increases the chances that management is thinking in the best interests of shareholders.
So what do Khandwala Securities insider trading indicate?
There haven’t been any insider trading in the past three months, that doesn’t mean much. However, our analysis of transactions over the past year is encouraging. With a high number of insiders and encouraging transactions, it seems Khandwala Securities insiders believe the company has merit. So, while it is useful to know what insiders are doing in terms of buying or selling, it is also useful to know the risks that a particular company faces. During our analysis, we found that Khandwala Securities has 3 warning signs and it would be unwise to ignore them.
Sure Khandwala Securities may not be the best stock to buy. So you might want to see this free collection of high quality companies.
For the purposes of this article, insiders are those persons who report their transactions to the relevant regulatory body. We currently account for open market transactions and private assignments, but not derivative transactions.
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