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It is not uncommon to see companies perform well in the years after insiders buy shares. On the other hand, we’d be remiss not to mention that insider sales have been known to precede tough periods for a business. So before you buy or sell Som Distilleries & Breweries Limited (NSE:SDBL), you may well want to know whether insiders have been buying or selling.
What Is Insider Selling?
It’s quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, rules govern insider transactions, and certain disclosures are required.
Insider transactions are not the most important thing when it comes to long-term investing. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Harvard University study found that ‘insider purchases earn abnormal returns of more than 6% per year.’
Check out our latest analysis for Som Distilleries & Breweries
Som Distilleries & Breweries Insider Transactions Over The Last Year
There wasn’t any very large single transaction over the last year, but we can still observe some trading.
In the last twelve months insiders purchased 105.10k shares for ₹18m. But they sold 1.00k for ₹228k. In the last twelve months there was more buying than selling by Som Distilleries & Breweries insiders. Their average price was about ₹175. These transactions suggest that insiders have considered the current price of ₹147 attractive. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
Som Distilleries & Breweries is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insiders at Som Distilleries & Breweries Have Bought Stock Recently
Over the last quarter, Som Distilleries & Breweries insiders have spent a meaningful amount on shares. Overall, 2 insiders shelled out ₹8.8m for shares in the company — and none sold. This makes one think the business has some good points.
Insider Ownership
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Som Distilleries & Breweries insiders own 55% of the company, currently worth about ₹2.6b based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.